Tokyo Gas of Japan signed a deal with Mitsui to buy 520,000 tons of LNG per annum from the Cameron project in the United States starting in 2020.
The project is operated by Sempra’s unit Cameron LNG, a company in which Mitsui & Co. will have a stake. It will build a new natural gas liquefaction plant at the existing Cameron LNG import terminal in Louisiana to refine and liquefy shale gas and other US-produced natural gas, exporting a maximum of 12 million tons per year.
“Mitsui & Co. will handle 4 million tons of this LNG per year, of which approximately 520,000 tons will be purchased by Tokyo Gas at a price linked to the US natural gas market (Henry Hub price). The contract provides for more flexible destination than LNG contracts in the past,” Tokyo gas said in a statement.
Tokyo Gas reached an agreement to purchase 1.4 million tons of LNG from the U.S. Cove Point project in April 2013. The project will provide the company with another US source of LNG, stabilizing its supplies and enabling it to purchase LNG at prices linked to the Henry Hub price.
Press Release, July 24, 2014; Image: Cameron LNG