Tokyo Gas, Co., Ltd. announced today the signing of a heads of agreement regarding the sale and purchase of liquefied natural gas (LNG) with Hokkaido Gas Co., Ltd. .
Under the agreement, Tokyo Gas will supply Hokkaido Gas with LNG for a period of 11 years extending from FY2012 to FY2022.
The LNG supplies to Hokkaido Gas will come from LNG projects with which Tokyo Gas has entered into contracts.
The agreement represents a convergence of interests between Tokyo Gas, which seeks to increase long-term, stable sales of LNG, and Hokkaido Gas, which seeks to ensure stable supplies as it procures LNG for the Ishikari LNG Terminal under construction in Ishikari Bay New Port.
The two companies will continue to move forward on discussions aimed at the signing of a final sales and purchase contract based on this agreement.
[mappress]
Source: Tokyo Gas, December 22, 2010;