TOKYO May 16 Japan's Eneos Globe Corp said on
Friday it raised its propane purchase from U.S. pipeline
operator Enterprise Product Partners by 800,000 tonnes
to a total of 3 million tonnes as part of its goals to diversify
supplies and reduce reliance on the Middle East.
Japanese firms have been increasing purchases of liquefied
petroleum gas (LPG) from the United States, with an aim to
procure stable supplies more cost effectively. U.S. LPG has been
generally cheaper than Middle Eastern rivals, which are linked
to Saudi Aramco's contract prices.
Eneos said it plans to buy 200,000 tonnes of propane this
year and more than 300,000 tonnes for unspecified number of
years from 2015, boosting reliance on North American LPG to
roughly 20 percent of its annual purchase of propane and butane
of around 3 million tonnes.
The prices are linked to spot propane prices at the key Gulf
Coast hub at Mont Belvieu in Texas, a company official said.
Japan's Astomos Energy last month announced it raised its
LPG purchase from Enterprise Product Partners by 2 million
tonnes to a total of 5 million tonnes from 2014 to 2021.
(Reporting by Osamu Tsukimori; Editing by Subhranshu Sahu)