Osaka Gas in LNG contract talks

Osaka Gas Co is in talks with some suppliers to remove restrictions in existing liquefied natural gas contacts that prohibit resale of the fuel, amid a global oversupply. The Osaka-based city-gas distributor won’t sign new contracts with so-called destination restrictions, said Sunao Okamoto, general manager of the company’s LNG trading department. Among Japan’s biggest buyers of the fuel, Osaka Gas plans to boost annual LNG fuel purchases to about 10 million metric tons by around 2020 and resell about 2.5 million tons, Okamoto said, without providing details.