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Japan gas operators sell surplus LNG to China in dribs and drabs

Fuel transported in small amounts to Chinese areas not connected to pipelines

A liquefied natural gas plant in Xi'an, China. Japanese utilities are selling their LNG surplus to China where consumption is strong.   © Reuters

TOKYO -- Local Japanese gas companies are shipping unsold inventories to Chinese clients in relatively small amounts now that demand at home has stagnated and parts of China unserved by pipelines are eager to buy.

Shizuoka Gas shipped five 18-ton containers of liquified natural gas last year to the oil major PetroChina on a trial basis. The Japanese company aims to finalize a three-year supply deal later this year, which will transfer tens of thousands of tons of LNG annually.

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