Tokyo Gas May Buys Stake in BG's Australian LNG Project

Tokyo Gas is mulling buying a less than 10% stake in BG Group’s Australian liquefied natural gas project, Dow Jones has reported citing a senior executive from the Japanese company.

The deal includes the purchase of 1 million tons of LNG a year from the Australian project, which is under development.

It also offers U.K.-based BG Group a way to defray some of the soaring costs of LNG development, which increased by more than a third in May due to the rising cost of labor and raw materials in the booming Australian economy, Dow Jones said.

BG Group representatives declined to comment, the newswire report said.