Tohoku Electric Signs 20 Year LNG Deal With ENGIE

Tohoku Electric Power on Friday signed a 20 year contract with ENGIE to buy 270,000 mt/year of LNG from US Cameron project.

The basic agreement between the two companies was signed last May. Prices will be linked to Henry Hub and supplies are expected to commence from 2018.

The deal also allows Tohoku to change the destination of LNG for the purpose of the demand and supply adjustment, and even assess the market trends, making it possible to resell to third parties by the two companies' cooperation, the Japanese firm said in a statement published Monday.

Tohoku stated that the move reflects response to changes in future market environment with an aim to realise a more flexible LNG deal. 

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