ENGIE, Kansai Electric Agree to Work Together in LNG Space

ENGIE and Kansai Electric have agreed to work together in the LNG sector, the French firm announced Tuesday.  

“This agreement will provide shipping optimization and other commercial and marketing opportunities in Europe and in other LNG markets to the benefits of Kansai and ENGIE,” the company said.

ENGIE will purchase 0.4 million tons per annum (mtpa) of LNG from Kansai’s North American LNG. Depending on markets conditions, ENGIE could then sell an equivalent amount of LNG to Kansai Electric in Japan. The transaction will start in 2019 for an initial period of four years which can be extended up to 20 years. ENGIE will manage these agreements – purchase, sale and shipping agreements – within its own diversified LNG portfolio.

“This agreement underlines the value that ENGIE, as a major LNG player, can bring to utilities such as Kansai Electric through its diversified LNG portfolio, its capacity to trade on global LNG markets and its shipping experience,” Philip Olivier, Chief Executive Officer of ENGIE GLOBAL LNG stated.