Toho Gas to Buy US Cameron LNG from Mitsubishi

Toho Gas has signed an agreement with Diamond Gas International Pte. Ltd., a 100 percent subsidiary of Mitsubishi Corporation, for a purchase of LNG produced at the US Cameron project.

The Japanese utility will buy three cargoes per annum (approx. 200,000 tonne per annum) for 19 years beginning 2019. The price will be linked to US natural gas price. “Today, we have entered into the sale and purchase agreement after discussion with the seller about the contract details since entering into heads of agreement in April 23, 2015,” Toho Gas said on Monday.

The fuel can be delivered to terminals in Japan not belonging to Toho Gas and abroad but only if both parties agree to a diversion.

Cameron LNG LLC. plans to construct LNG liquefaction facilities in Cameron, Louisiana, US (overall capacity, 12 million tonne per annum) to liquefy natural gas, including shale gas, and to export as LNG.