Japan's Shizuoka Gas closes first round of tender for LNG term contract: sources

Japan's Shizuoka Gas has closed the first round of a tender to buy LNG in a seven-year term contract starting in April 2027, sources with direct knowledge said on Oct. 3.

The company, based in central Japan, asked sellers to submit indicative offers for five cargoes a year for seven years starting in April 2027, the sources said, adding that the price was linked to Brent crude oil and on a DES basis.

The company wasn't immediately available for comment on the matter.

Some of the company's term contracts are set to expire in the coming years, one of the sources said, adding that it is likely to sign a deal by the end of 2025.

Shizuoka Gas will see its Malaysia LNG Dua contract expiring in 2026, a portfolio contract with Jera in 2027, the Prelude FLNG contract in 2027, and the North West Shelf contract in 2028, according to data from the Japan Organization for Metals and Energy Security.

The company has also signed a binding long-term LNG supply and purchase agreement with Australia's Santos to buy LNG from Santos' portfolio in December 2024, Platts reported previously. The long-term SPA will supply between 0.35 million and 0.4 million mt/year of LNG at plateau, the company said. The contract term is 12 years, commencing in 2032 on delivered ex-ship, or DES, terms, it added.