Centrica has signed a five year Sales and Purchase Agreement (SPA) with Japanese utility JERA, the world’s largest buyer of liquefied natural gas (LNG). Under the terms of the SPA, which commences in April 2019, Centrica will purchase up to 6 cargoes per annum at the Isle of Grain Terminal in the UK and work with JERA to optimise the volume.
The SPA follows the execution earlier this year of a Memorandum of Understanding (MOU) between Centrica and JERA to collaborate in the LNG business.
Jonathan Westby, Centrica’s Co-Managing Director of Energy, Marketing & Trading, said: “This agreement further develops our presence in the global LNG market. The alliance we have developed with JERA compliments both businesses and this relationship will support the growth of our LNG activities, particularly in the Asian market”.
Yuji Kakimi, President of JERA said: “It is a great pleasure that we have concluded this binding agreement with Centrica, the UK’s leading energy and services company. Going forward, collaborating with European companies is very important for our LNG procurement and we will pursue expansion of such activities.”
JERA was formed in April 2015, combining the fuel procurement businesses of Tokyo Electric (TEPCO) and Chubu Electric.
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