Posted - December 6, 2013 - Hellenic Shipping News Worldwide - Bloomberg
Tokyo Electric Power Co. (9501), Japan’s largest power utility, is in
talks with BP Plc (BP/) to buy 500,000 metric tons a year of liquefied
natural gas, according to two people with knowledge of the discussions.
Tepco, as the company is known, will pay for the fuel using a formula
linked to both gas and oil prices, said the people, who asked not be
identified because they aren’t authorized to speak to the media.
The company is negotiating with potential suppliers to buy as much as
1.2 million tons of LNG a year, said Yusuke Kunikage, a Tokyo-based
spokesman for Tepco, declining to provide further details. Lynda Goh, a
spokeswoman for BP in Singapore, declined to comment.
Tepco currently buys 20.56 million tons of LNG annually through term contracts, according to data compiled by Bloomberg.
Prices in long-term LNG purchase contracts, which usually run for more
than 10 years, are typically linked to Brent crude, or the so-called
Japan Crude Cocktail.
Source: Bloomberg
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