Sumitomo, Tokyo Gas in LNG Deal With Dominion

Sumitomo Corp has said it plans to ink a deal with Dominion Resources to secure LNG from its Cove Point project. Sumitomo will be joined by Tokyo Gas in buying 2.3 million metric tons of liquefied natural gas annually for 20 years.

Sumitomo Corporation and Tokyo Gas have so far conducted a comprehensive deliberation on potential cooperation regarding the natural gas business in the United States and the import of LNG to Japan. Following the conclusion of the earlier agreement between Sumitomo Corporation and Dominion, Sumitomo Corporation and Tokyo Gas have decided to work together as a team to negotiate the deal with Dominion.

A new LNG liquefaction plant in the existing Cove Point LNG import terminal owned and operated by Dominion has been envisioned, enabling Dominion to provide natural gas liquefaction service for export in the form of LNG.

“If the project is finally agreed, Sumitomo Corporation will be able to establish a natural gas and LNG value chain in the United States across natural gas upstream development, through distribution and liquefaction, to LNG export.,” Sumitomo said in a statement.