Tokyo Gas of Japan could swap its United States LNG volumes with equivalent quantities of Asian sourced liquefied natural gas.
Michiaki Hirose , Tokyo Gas president said the company would deliver its US sourced LNG to a number of locations while bringing Asian sourced LNG to Japan, Platts reports.
The company has booked 0.72 million tons of LNG per year from the Cameron LNG project and an additional 1.4 million tons of LNG per year from the proposed Cove Point LNG terminal.
Hirose was reported as saying that swapping cargoes could provide resistance to price movements resulting in cheaper LNG cargoes. He added that the company could consider forming alliances for LNG business.
A number of Japanese companies have already made arrangements to deliver USA LNG to other destinations.
Kansai Electric and Engie agreed to cooperate on LNG procurement. Engie agreed to buy 0.4 million tons per annum of LNG from Kansai’s North American LNG. Depending on markets conditions, Engie could then sell an equivalent amount of LNG to Kansai Electric in Japan.
The transaction will start in 2019 for an initial period of four years which can be extended up to 20 years.
Earlier this year, Jera, a joint venture between Chubu Electric and Tepco, agreed to sell about 1.5 million mt to EDF Trading at European LNG terminals for a period of approximately two and a half years beginning in June 2018. The volumes will be sourced from the Freeport LNG project in the United States.
LNG World News Staff