Sumitomo Signs LNG Supply Deals

Sumitomo Corporation has entered into Heads of Agreement (HoA) for sale and purchase of liquefied natural gas with Kansai Electric Power (KEPCO) under which Sumitomo has agreed to sell 0.8 mtpa of LNG from the U.S. Cove Point LNG Project. Sumitomo has also inked a deal with Tokyo Gas for the sale and purchase of a volume of 1.4 mtpa of LNG for exports to Japan. 

The deals come after Sumitomo, through Pacific Summit Energy LLC, a wholly owned subsidiary, signed the Terminal Service Agreement with Dominion for liquefaction service to liquefy natural gas to LNG, the volume of 2.3 mtpa for export, the company said.

The Cove Point LNG Project will involve construction of a new natural gas liquefaction facility at the existing Cove Point LNG Terminal currently in operation as a LNG receiving terminal, in Maryland (MD) USA planned by Dominion Cove Point LNG.

The contracted quantity for the liquefaction service of the Project is estimated to be approximately 4.6 mtpa.

After several processes such as issuance of an authorization granted from the U.S. Department of Energy to export LNG to non-FTA countries, the Project will start operation in mid to late 2017, Sumitomo said in a statement.

Sumitomo said it will endeavor to export LNG from the USA, the world's largest natural gas producer, in order to contribute to a security of LNG supply for Japan.