Tokyo, October 12 - Neftegaz.RU. Tokyo Gas announced it has signed an initial agreement with Mitsubishi Corporation subsidiary Diamond Gas International (DGI) for purchase of LNG from Shell-operated LNG Canada project.
«By signing this agreement, Tokyo Gas is contributing to the start-up of the very 1st large-scale LNG production project in Canada,» the company said.
This LNG project, of which Mitsubishi Corporation holds 15% interest, is expected to produce 14 million tons per annum (mtpa) of LNG from large reserves in Western Canada at LNG liquefaction plant to be built in West Coast of Canada.
Of all the volumes to be produced, DGI will offtake 2.1 mtpa, and Tokyo Gas will purchase LNG from DGI for the period of 13 years starting in 2026, for volume of up to 0.6 mtpa delivered on Ex-Ship (with destination flexibility). On top of the access to abundant natural gas in Canada, the proximity of the project to Japan, which allows the shipment to take only about 10 days, promises a stable long-term supply of LNG.
Tokyo Gas received Japan’s very 1st LNG cargo in 1969, and 2019 marks its 50th anniversary.
