Japanese provider of natural gas Tokyo Gas has signed a heads of agreement with Diamond Gas International, Mitsubishi Corporation’s subsidiary, for sale and purchase of liquefied natural gas (LNG) from the Cameron LNG project in the United States.
Namely, as a new natural gas liquefaction plant will be built in the Cameron LNG Terminal in Louisiana to refine and liquefy shale gas and other US-produced natural gas, around 12 million tons of natural gas per year will be available for export.
Under the agreement, Diamond Gas International will handle around 4 million tons of this export capacity on a yearly basis, of which approximately 200,000 tons, equivalent to three cargoes per year, will be purchased by Tokyo Gas from DGI at a price linked to the US natural gas market.
The parties shook hands on ex-ship delivery, meaning that the cargo will be delivered to the buyer at a previously agreed port of arrival.
Tokyo Gas said that, from 2020 onwards, it will purchase around 2.12 million tons of LNG per year to achieve further diversification of LNG sources, price indices and destinations.