Buyer puts faith in PNG LNG

ONE of Papua New Guinea’s long-term buyers of LNG expressed confidence in the country as a prospective supplier of LNG.
JERA Co Inc is a 50-50 joint venture of two LNG companies from Japan and has been buying LNG from PNG since 2014.
The firm is keen on strengthening its relationship with PNG in the LNG (liquefied natural gas) business.
Chief fuel transaction officer and senior executive vice-president of the company Hiroki Sato, during his address at the PNG Petroleum and Energy Summit in Port Moresby yesterday, said JERA would remain a major buyer of PNG LNG in coming years.
The firm had since 2014 secured a 20-year contract to purchase about1.80mtpa (metric tonnes per annum) from the country.
“A lot of uncertainties we are facing today but I’m convinced that we are at the tipping point towards the future,” Sato said.
“JERA is a long-term LNG buyer for PNG since 2014 and stable LNG deliveries have been made.
“LNG from PNG accounts for approximately five per cent of JERA’s total LNG imports.
“1.8 million tons contract between PNG and Jera.
“On top of the long-term contract, we are optimistic and happy to secure spot volume, PNG is an important supplier.
“I’m confident PNG is a prospective supplier in the world.
“We would like to strengthen the relationship in the LNG business.
“JERA has three concerns – how to secure the price competitiveness volume, how to secure tradeable volumes and how to expand the global market capacity
“From those concerns, we will continue to have a keen interest in this country.”