Tokyo Gas Opens Hitachi LNG Terminal

Japan’s natural gas provider Tokyo Gas has launched operations at its newly constructed Hitachi LNG Terminal in the port of Hitachi.

The new terminal is equipped with a 230,000 kilolitre LNG storage tank, capable of holding some 100,000 tons of chilled gas, as well as a 50,000 kilolitre LPG storage tank.

The company said that it also started using the new high pressure trunk line Ibaraki-Tochigi Line, which brings Tokyo Gas’ owned high pressure pipeline network to a total of 950km, located mainly around Tokyo metropolitan area.

The construction of the terminal and the line commenced in 2012 and, according to Tokyo gas, they are expected to meet the future growth of gas demand.

The company said that it plans to construct a second LNG storage tank at the terminal by 2020, adding that the energy security would be improved in the Kanto region by looping high pressure trunk lines through connecting existing Kashima Waterfront Line and the new Ibaraki-Line.

The move comes less than a month after the natural gas provider entered a heads of agreement with Diamond Gas International, Mitsubishi Corporation’s subsidiary, for sale and purchase of LNG from the Cameron LNG project in the United States.

Under the agreement, Tokyo Gas said it would buy some 200,000 tons of LNG, equivalent to three cargoes per year, from Diamond Gas International at a price linked to the US natural gas market.

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