Tokyo Gas to Buy More LNG from the US

Tokyo Gas Co Ltd, Japan's biggest city gas supplier, said on Wednesday it signed an agreement with a unit of Mitsubishi Corp to buy about 200,000 tonnes of liquefied natural gas (LNGLF) (LNG) per year from the Cameron project in the United States for 19 years from 2020.

 

The three cargoes per year are bought on U.S. natural gas Henry Hub index-linked prices and will be delivered on ex-ship basis, the company said.

 

LNG imports by Japan, world's top buyer of the super-cooled fuel, jumped since the Fukushima nuclear disaster, with utilities looking to boost supplies from North America, and diversify supply sources and lower costly LNG import prices.

 

This marks the second purchase of Cameron LNG for Tokyo Gas (TOG.BE), which has already agreed to buy 520,000 tonnes per year from Mitsui & Co.

 

Tokyo Gas said its purchases of LNG, which is linked to U.S. natural gas index, will total 2.12 million tonnes per year from 2020, accounting for 15 percent of its current purchases.

 

Mitsui & Co and Mitsubishi's joint venture with Nippon Yusen each have a 16.6 percent stake in Cameron project, and will procure 4 million tonnes of LNG each every year from the project.


(Reporting by Osamu Tsukimori; Editing by Sherry Jacob-Phillips)