TOTAL (TOT) To Supply LNG To Chugoku Electric For 17 Years
Zacks Investment Research | Jul 22, 2016 03:43AM ET
Integrated oil & gas company TOTAL S.A. (TO:TOT) announced that it has signed an agreement with Japan’s Chugoku Electric for the direct supply of liquefied natural gas (LNG) for a period of 17 years starting from 2019.
The Agreement
Per the agreement, Total will supply Chugoku Electric with up to 0.4 million tons of LNG per year sourced from its global portfolio. TOTAL has been operating in Japan for nearly the last four decades and the latest deal will further strengthen its position in the country.
Japan Post-Fukushima
After the Fukushima nuclear accident, Japan has steered clear of nuclear energy, diverting its focus to fossil fuels and alternate sources to produce electricity. The decision to shut down all nuclear power plants post Fukushima tragedy enhanced the importance of fossil fuel as an energy source in Japan.
Incidentally, Japan is the largest importer of LNG in the world. TOTAL with a presence in the entire LNG value chain is well poised to benefit from the rising demand of LNG in Japan.
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