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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- Centrica is an international energy and services company. Everything we do is focused on satisfying the changing needs of our customers.
- We supply energy and energy-related services to around 28 million customer accounts in the UK, Ireland and North America, through strong brands such as British Gas, Direct Energy and Bord Gáis Energy supported by around 12,000 engineers and technicians.
- We are also developing new and innovative products and services for customers globally. Our Connected Home business has developed products such as the Hive smart thermostat and through our Distributed Energy & Power business we offer integrated energy solutions for commercial and industrial customers, including flexible generation, energy management systems, and battery storage.
- We also have an Energy, Marketing & Trading business which manages commodity risk and provides wholesale market access for the Group, as well as offering route to market services for third parties and undertaking optimisation and trading activity.
- Centrica continues to be active in Exploration & Production, focusing on the UK, Netherlands and Norway and targeting production of between 40-50mmboe per annum. In Central Power Generation, we own five gas-fired power stations in the UK and a 20% interest in EDF Energy’s UK nuclear fleet, while we intend to dispose of our remaining wind generation asset, Lincs, by the end of 2017. We also own the UK’s largest gas storage facility, Rough