Kansai, GDF to Jointly Procure, Sell LNG

Japanese utility Kansai Electric Power and France’s GDF Suez plan to jointly procure and sell LNG, according to Nikkei Asian Review.

For Kansai the move would establish a new revenue source ahead of the deregulation of retail energy markets in Japan, Nikkei said

The two companies are in the final stages of negotiations and plan to reach an agreement as early as Tuesday.

Under the plan, the Japanese utility will purchase cheaper North American shale gas and ship it to GDF Suez customers in South America and Europe, Nikkei reported adding that the French energy company will supply Middle Eastern and African gas to the utility's domestic facilities.

Jointly operating LNG transport ships or obtaining gas concessions are also under consideration, Nikkei reported.