Tokyo Gas to buy gas from Mitsubishi

Tokyo Gas signed an agreement with Diamond Gas International Pte. Ltd., a fully owned subsidiary of Mitsubishi Corporation (MC), for sale and purchase of liquefied natural gas from the Cameron LNG project in the United States.

The Project is operated by Cameron LNG, a company in which MC has a stake. It will build a new natural gas liquefaction plant in the Cameron LNG Terminal in Louisiana (USA) to refine and liquefy shale gas and other US-produced natural gas, exporting around 12 million tons per year.

MC’s subsidiary will handle around 4 million tons of this LNG per year, of which approximately 200,000 tons will be purchased by Tokyo Gas from DGI at a price linked to the US natural gas market (Henry Hub price). From 2020 onwards, Tokyo Gas will purchase around 2.12 million tons of LNG per year at a price linked to the Henry Hub price to achieve further diversification of LNG sources, price indices and destinations.

In its “Challenge 2020 Vision,” Tokyo Gas targets diversification and expansion of its LNG sources, including the use of non-traditional LNG, and by expanding its international LNG value chain. This Project brings it closer to that goal.