Hokkaido Gas, Mitsui Sign LNG Deal

Japan's Hokkaido Gas on September 30 said it has signed a ten-year agreement to buy LNG from Mitsui.

Hokkaido Gas will buy two to three cargoes per year from Mitsui for 10 years starting April 2019. The cargoes would total between 130,000 metric tons and 200,000 mt/year, Hokkaido Gas said. Mitsui will source the fuel from its own portfolio.

Hokkaido Gas last month commenced operation at 200,000 m³ No 2 LNG tank at Ishikari terminal. In a statement issued September 16, the Japanese firm said the new tank will expand the capacity at the terminal to 380,000 m³ from 180,000 m³. The construction of the tank began in 2013. Hokkaido Gas owns the first and the second tank while third and the fourth tanks are owned by Hokkaido Electric.

No.2 LNG tank at Ishikari terminal (Credit: Hokkaido Gas)

In September 2015, Hokkaido Electric signed agreements to buy up to 330,000 metric tons/yr of LNG. The utility signed basic agreements with Kansai Electric Power and a unit of Malaysian state producer Petronas to buy up to three and two cargoes per year, respectively, for ten years from April 2018. 

Shardul Sharma