Japanese trio, Hiroshima Gas, Tokyo Gas and Tokyo LNG Tanker have signed a deal for liquefied natural gas transportation.
Under the agreement, some of the LNG procured by Hiroshima Gas and Tokyo Gas from Sakhalin, Russia will be transported at the same time on LNG carriers owned and managed by Tokyo LNG Tanker for a period of eight years from 2020 to 2027.
Tokyo Gas said that the agreement was made possible with the cooperation of Sakhalin Energy Investment Company, a long term supplier of Hiroshima Gas and Tokyo Gas.
This agreement enables Hiroshima Gas to enhance its efficiency of LNG transportation and reduce its transporting costs, the statement reads.
Tokyo LNG Tanker transports LNG other than that of the Tokyo Gas Group by utilizing the LNG fleet it owns and manages.
This agreement is the third such case, but is the first initiative to carry LNG of multiple owners at once, and enables further utilization of the LNG carriers that Tokyo LNG Tanker owns and manages, Tokyo Gas said in its statement.
Hiroshima Gas and Tokyo Gas will further deepen the partnership with the conclusion of this agreement, and the two companies will aim to realize a low-cost and stable supply of energy that will benefit customers of both companies.