Japan's Chubu Electric is looking to own US shale gas assets, in a bid to control the cost of feedstock to Freeport LNG terminal, with which Chubu has signed a long-term supply contract indexed to Henry Hub. According to the firm's head of trading Hiroki Sato, the main purpose of this is 'natural hedging'. Chubu Electric has yet to disclose the assets it is considering at the time of writing. Chubu's intentions reveal buyers' continued concerns about prices despite much optimism about downward pressures on LNG costs.
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