Japan's Toho Gas Buys U.S.- Sourced LNG from Mitsubishi Corp
Japanese utility Toho Gas has entered into a deal to buy three liquefied natural gas (LNGLF) (LNG) cargoes annually over a 19-year period from a subsidiary of Mitsubishi Corporation, it said.
Supplies will be sourced from the U.S. Cameron LNG export plant being built along the Gulf Coast, according to a statement dated June 6.
"Today, we have entered into the sale and purchase agreement after discussion with the seller about the contract details since entering into heads of agreement (a draft agreement) in April 23, 2015," Toho Gas said.
The price of shipments will be linked to U.S. natural gas prices, it said.
Mitsubishi Corp subsidiary Diamond Gas will supply the cargoes to Toho Gas.
The supplies, due to start from 2019, can be delivered to terminals in Japan not belonging to Toho Gas and abroad but only if both parties agree to a diversion.
(Reporting by Oleg Vukmanovic in Milan)
