Tokyo Gas Signs Agreement to Buy More LNG from Cameron Project

Tokyo Gas Co Ltd on Wednesday signed heads of agreement for sale and purchase of LNG from the Cameron LNG project in the United States.

The agreement was signed between Tokyo Gas and Diamond Gas International Pte. Ltd. which is fully owned subsidiary of Mitsubishi Corporation. Diamond Gas will supply 200,000 tons of LNG per year at a price linked to Henry Hub. The agreement runs for 19 years starting 2020.

This is the second purchase from Cameron LNG project for Tokyo Gas. In 2014, it signed an agreement with Mitsui for purchase 520,000 tons of LNG per year for 20 years, staring 2020.

From 2020 onwards, Tokyo Gas said, it will purchase around 2.12 million tons of LNG per year at a price linked to the Henry Hub price to achieve further diversification of LNG sources, price indices and destinations.

Mitsui & Co and Mitsubishi's joint venture with Nippon Yusen each have a 16.6 percent stake in Cameron project, and will procure 4 million tonnes of LNG every year from the project.