Chugoku Electric Power (Chugoku EPCo), headquartered in Hiroshima Prefecture, announced on January 7, 2020, that it has purchased and received liquefied natural gas (LNG) from the Sabin Pass LNG Project (SPL Project) at Yanai Power Station in Yamaguchi prefecture.[1] [2] [3] Chugoku EPCo signed a contract to purchase up to 400,000 tons of LNG annually for 17 years from Total Gas and Power Asia Ltd, a French energy company.

The SPL Project, operated by Cheniere, a U.S. LNG company, is located in Cameron Parish, Louisiana.[4] The LNG was loaded onto the carrier BW Tulip on December 9, 2019, in Louisiana. This is the first time that Chugoku EPCo has received LNG produced in the U.S., and the first time that it has received LNG containing shale gas. The LNG price index is based on the U.S. natural gas market price.

Chugoku EpCo is working to diversify its suppliers and procurement methods, alleviate its quality constraints, and reduce procurement prices, in order to improve the stability of its LNG procurement and reduce risks due to fluctuations in fuel prices.

[1] http://www.energia.co.jp/e/corp/pr/pr.html

[2] http://www.energia.co.jp/business/lng/lng1.html

[3] http://www.energia.co.jp/press/2020/12235.html

[4] https://www.cheniere.com/terminals/sabine-pass/