Mitsui to Supply Cameron LNG to Tokyo Gas

Japan's natural gas utility, Tokyo Gas on Thursday said it has signed an agreement with Mitsui for purchase 520,000 tons of LNG per year for 20 years from the Cameron LNG project in the United States.

As per the deal, supplies will begin in 2020 and price will be linked to the US natural gas market (Henry Hub price). The contract provides for more flexible destination than LNG contracts in the past, Tokyo Gas said

Mitsui, which has a 16.6 percent stake in Cameron project, will handle 4 million tons of LNG per year.  

Last year, Tokyo Gas reached an agreement to purchase 1.4 million tons of LNG from the Cove Point Project, another US based LNG project.

In its "Challenge 2020 Vision," Tokyo Gas targets a reduction in raw material prices by diversifying and expanding its LNG sources, including the use of non-traditional LNG, and by expanding its international LNG value chain.