Tokyo Gas, RWE Sign LNG MoU

Japanese utility Tokyo Gas November 9 signed a memorandum of understanding on LNG sourcing with Germany’s RWE Supply & Trading, the trading arm of RWE.

The two companies have initially agreed on a framework for cost reduction through LNG shipping and trading optimisation using the US LNG procured by Tokyo Gas, the Japanese utility said, adding that they were working on a legally-binding agreement on this framework.

Tokyo Gas emphasised it will keep on promoting global alliance with partners across the countries in order to enhance the LNG value chain.

"Through the collaboration with RWE with its diverse LNG portfolio both in the Atlantic and Asian markets, we aim to expand flexible LNG transactions bridging Asia, North America and Europe. It should contribute to price competitiveness and stability of our LNG supply and maximize the value for our customers,” Takashi Higo, senior general manager of gas resources department of Tokyo Gas said.

Andree Stracke, chief commercial officer of RWE Supply & Trading said: “As new production comes online in the next few years, especially from the US, Europe will undoubtedly play a larger role as a key demand hub and we will continue to take advantage of these opportunities through LNG trading. We look forward to work together with Tokyo Gas during this exciting time for the LNG business.”

Tokyo Gas along with Total and Mitsui November 7 signed heads of agreement (HoAs) with Sempra Energy for future volumes from its planned Energia Costa Azul liquefaction project (ECA) on Mexico's Pacific coast.