Tokyo Gas of Japan said on Wednesday it has signed a deal with a Mitsubishi Corporation unit to buy liquefied natural gas from Sempra’s Cameron LNG export project in Louisiana.
Under the heads of agreement with Diamond Gas International, Tokyo Gas will purchase around 200,000 tons of U.S. LNG per year, starting in 2020, the Japanese utility said in a statement.
The deal is for a term of 19 years with three ex-ship cargo deliveries per year with prices linked to the US natural gas market, Tokyo Gas said, adding that the total volumes will reach around 2.12 million tons.
Tokyo Gas already has a deal in place with a Cameron LNG project stakeholder Mitsui to purchase approximately 520,000 tons of liquefied natural gas per year also linked to Henry Hub price.
Cameron LNG, a unit of Sempra LNG which operates the project, in September last year filed for export capacity expansion which would bring the initially planned capacity of around 12 mtpa to 24.92 mtpa.
LNG World News Staff