TEPCO Signs LNG Purchase Deal With BP

Tokyo Electric Power Company (TEPCO) and BP Singapore (BPS), an affiliate of BP Group have signed an agreement under which the Japanese utility will purchase up to 1.20 million tons of LNG per year over 17 years from the British firm.

LNG supplies are expected to commence in April 2017 and the gas would be sourced from multiple sources the BP holds, TEPCO said Friday in a statement. The prices will be linked to the US Henry Hub gas index rather than oil prices.

This is the first long term contract of its kind for TEPCO.

“TEPCO has reviewed multiple supply sources, including those of US origin, in its strategy towards the annual purchase of approximately 10 million tons of lean LNG (half the amount of LNG purchasing). With this agreement concluded with BPS, a total of approximately 2 million tons of lean LNG per year will be secured,” the Japnese utility said.