Toho Gas inks LNG Canada supply deal

Toho Gas inks LNG Canada supply dealImage courtesy of LNG Canada

Japanese utility, Toho Gas on Wednesday signed a deal with Diamond Gas International for the supply of liquefied natural gas from the recently sanctioned LNG Canada project in Kitimat, Canada. 

Diamond Gas International, a Mitsubishi Corp unit, will deliver up to four cargoes or about 300,000 tons of LNG per year to Toho Gas.

The contract has a 15-year term and deliveries are set to start in 2024/2025, on an ex-ship basis, Toho Gas said in its statement.

The company added that further to its current supplies from Indonesia, Australia, Malaysia, Qatar and Russia, it plans on starting LNG imports from the United States in the fiscal year 2019.

The Hague-based LNG giant Shell has taken a final investment decision on LNG Canada earlier this month.  Other project partners include Malaysia’s Petronas, PetroChina, Japan’s Mitsubishi Corporation and Kogas of South Korea.

LNG Canada will initially export LNG from two trains totaling 14 million tons per annum (mtpa), with the potential to expand to four trains in the future.

The joint venture of JGC-Fluor Corporation has been previously selected as the project’s engineering, procurement and construction (EPC) contractor.

 

LNG World News Staff

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