Japanese power company, Kansai Electric Power Group, said it has signed a binding term agreement with Hartree Partners for the supply of LNG alongside investment in a nature-based carbon project in Australia.
Kansai Electric did not provide details regarding LNG volumes or the duration of the contract.
It said in a statement this is the first deal of its kind in Japan and it represents the group’s long-term commitments to “decarbonization and the provision of low-carbon energy for its customers.”
This LNG supply agreement enables KE Fuel Trading Singapore to grow its LNG portfolio which will support Kansai Group’s LNG supply-demand situation and customers around the globe, it said.
According to the firm, combination of LNG and carbon credit will give it a “promising option” to attain the company’s mission to provide its customers with stable energy supply and decarbonization solution.
Also, through its expertise in global carbon markets and its project portfolio in Australia, specifically focused on nature restoration, Vertree Partners, Hartree’s global carbon market arm, will support Kansai Electric to “access future supply of high-integrity carbon credits to support its zero carbon vision,” it said.
Both companies will explore potential opportunities to support Japan’s national net zero targets in areas such as LNG, renewable energy, environmental products, and carbon capture and storage (CCS), Kansai Electric said.
Kansai Electric uses LNG as fuel for thermal power generation, including for its Himeji No. 1 and No. 2 power stations, Nanko power station, and Sakaiko power station, according to its website.
The firm buys LNG from US, Qatar, Australia, Indonesia, UAE, and operates the Himeji and Sakai LNG import terminals, GIIGNL data shows.
On the other hand, Hartree Partners signed earlier this year a binding 20-year deal with Delfin Midstream, the developer of a floating LNG export project in the Gulf of Mexico, to buy 0.6 million tonnes per annum on a free on-board basis.