Japan's TEPCO, Russian Gazprom in LNG trade deal

Tokyo, Aug 17: Tokyo Electric Power Co (TEPCO), Japan's largest utility, said on Thursday it had signed an agreement with Russian gas monopoly Gazprom for the trading of liquefied natural gas (LNG).

Gazprom will mostly sell LNG on a spot basis to TEPCO, and the Russian company can also buy surplus LNG from the Japanese utility, a TEPCO spokesman said.

''The agreement will facilitate spot trading between both companies in the future. Prices, volumes and delivery spot will be decided in each case,'' the spokesman said.

He did not disclose the value of the deal and did not know when the companies would trade the first cargo.

Gazprom is positioning itself as a global LNG trade giant and the agreement gives it a foothold to expand its business to the Pacific.

TEPCO, the world's second largest commercial LNG buyer, is regarded as the most valuable strategic partner by international gas producers and it is seeking more flexibility in its LNG purchase contracts and trading business.

REUTERS