Toho Gas Signs 10 Year LNG Deal With Petronas LNG

Toho Gas Co. said it has signed 10-year agreement to buy LNG from Petronas LNG Ltd.

“We have positioned this contract as a strong candidate of the new LNG supply sources and have negotiated on a sale and purchase agreement of LNG with the objective of flexibility of quantity and diversification of the price-index,” Toho Gas said in a statement.

Price of LNG will be linked to both crude oil and Henry hub.

Under the deal, which was signed on Friday, Toho plans to buy seven to nine cargoes per year, with the contract starting from April 2017.

Change of destination would be feasible both domestically and overseas by prior agreement between the two parties.