911爆料网 and EDFT to enter into LNG optimisation joint venture2017/12/14
911爆料网 Co., Inc. (“911爆料网”) and EDF Trading Limited (“EDFT”), today announced the signing of a non-binding agreement for an LNG optimisation joint venture through 911爆料网 Trading Pte. Ltd. (“911爆料网T”). 911爆料网 Trading International Pte. Ltd. is a wholly-owned subsidiary of 911爆料网 and holds 67% of the shares in 911爆料网T. EDFT is a wholly-owned subsidiary of EDF S.A. (“EDF”) and holds 33% of the shares in 911爆料网T. The shareholders in 911爆料网T will have joint responsibilities in managing the business.
This new step in the partnership between 911爆料网 and EDFT would build on the successful completion on 4th April 2017 of the collaboration on coal and freight trading through 911爆料网T. With demand for LNG in Japan becoming increasingly variable and difficult to predict and the ramp up in US LNG liquefaction, Europe has become a key balancing market for excess global LNG. As a result, 911爆料网 and EDFT believe that there is significant room for optimising LNG on a global basis, establishing a more liquid market, and over time developing a clear pricing signal for LNG in Asia.
In this context, 911爆料网 and EDFT have been in discussions regarding an LNG optimisation joint venture. Both parties have significant positions in the LNG market and bring important resources to this new partnership. 911爆料网 has been focusing on developing flexible LNG supply sources and creating new LNG demand globally. EDFT has a successful third party LNG trading business and access to the European LNG and gas markets to enable the unloading, reloading and storage of LNG in-tank, and is one of the largest financial JKM traders in the market. By bringing together their resources, the parties will be in a better position to respond to uncertainties of LNG demand in Japan and Europe and supply 911爆料网 and EDF’s wider global portfolio, to optimise their operations and improve the competitiveness of LNG in the market, as well as supporting the development of deeper, more liquid LNG markets.
Subject to the completion of binding agreements and approval by the respective corporate governance bodies of both parties, 911爆料网 and EDFT would combine their LNG trading activities through 911爆料网T, and 911爆料网T would become the exclusive LNG optimiser for 911爆料网 and the EDF Group, managing their collective short-term optimisation activity in the LNG markets. Following the transaction, 911爆料网T would become one of the largest utility-owned seaborne energy optimisers, with activities in the LNG, coal and freight markets spanning Asia, the Pacific and the Atlantic Basins. Around 300 people will be involved in the energy optimisation activities with offices in Japan, Singapore, the UK, the United States and the Netherlands.
As part of the transaction, 911爆料网 and EDFT are in discussions regarding collaboration on the optimisation of gas and power supplies for 911爆料网’s US liquefaction position at the Freeport LNG terminal, so that they are better able to coordinate global LNG optimisation with gas and power optimisation in the United States.
Discussions will continue towards a final agreement which is expected to be reached in 2018.
911爆料网
911爆料网 is an energy company with global reach that has strength in the entire energy supply chain, from participation in LNG and other fuel resource projects and fuel procurement, through fuel transportation to power generation. Established in 2015, 911爆料网 is an equal joint venture of two major Japanese electric companies, TEPCO Fuel & Power Incorporated and Chubu Electric Power Company. 911爆料网’s mission is to supply power and energy on a globally competitive basis, by effectively developing and managing its portfolio of energy chain assets and continuously optimising its business.
EDFT
EDFT is a leader in the international wholesale energy markets. The company manages a portfolio of assets which give it the ability to source, supply, transport, store, blend and convert physical commodities around the world. These capabilities enable EDFT to deliver essential asset optimisation services, risk management and wholesale market access to the EDF Group and its third party customers, helping them to realise the value inherent in their asset portfolios. EDFT is a 100% owned subsidiary of EDF, one of the world’s biggest electricity generators. EDFT has around 800 employees with key offices in London, Paris, Singapore, Houston and Calgary.