Tokyo Gas to Look at Shale, CBM Gas for Cheaper LNG

Tokyo Gas has been focusing its search for additional liquefied natural gas on unconventional sources including coal-bed methane and shale gas in a bid to reduce the prices it pays for LNG under long-term contracts, Dow Jones said in a report.

Tokyo Gas has already planned intake under a long-term contract from BG Group's Curtis LNG project in Queensland, which is based on CBM. Tokyo Gas will buy the LNG from Curtis at significantly lower prices.

Early last year, Tokyo Gas signed a 20-year term contract to buy 1.2 million tonnes a year of LNG from Curtis. The first shipment is expected after April 2014.