Japanese utility Tokyo Gas signed a memorandum of understanding on mutual cooperation on LNG sourcing and trading with RWE Supply & Trading, the trading arm of the leading European utility RWE AG.
RWE is one of the largest energy suppliers in Europe is actively engaging in LNG trading as well based on the markets in Europe, Asia and Middle East.
With this MOU signed for strategic cooperation, both companies aspire to strengthen the ties mainly in the area of LNG sourcing, Tokyo Gas said.
As the first concrete step under the MOU, a framework has been agreed for cost reduction through LNG shipping and trading optimization utilizing the US LNG procured by Tokyo Gas.
The discussion is underway toward a conclusion of the legally binding agreement on this framework, Tokyo Gas said.
Takashi Higo, executive officer and senior general manager of gas resources department of Tokyo Gas said, “Through the collaboration with RWE with its diverse LNG portfolio both in the Atlantic and Asian markets, we aim to expand flexible LNG transactions bridging Asia, North America and Europe. It should contribute to price competitiveness and stability of our LNG supply and maximize the value for our customers.”
RWE Supply & Trading’s CCO Andree Stracke added the company is looking to seize opportunities to strengthen its ties with Asian LNG players as well as Europe’s emerging demand hub role through trading LNG volumes.