Toho Gas Co. Ltd has entered into a heads of agreement (HOA) with Diamond Gas International Pte Ltd, for the purchase of LNG from the Cameron LNG project.
Under the agreement, Toho Gas will purchase approximately 200 000 tpy of LNG for a period of 20 years, from the start of production at the project, at prices linked to US natural gas prices.
The agreement for LNG purchase from the project is the second, following a sale and purchase agreement (SPA) signed with Mitsui & Co. Ltd in January 2014. The total volume procured will be 500 000 tpy.
Toho Gas added that it would continue to diversify LNG procurement to enable stable city gas supply to its customers at a competitive price.
Cameron LNG plans to construct LNG liquefaction facilities in Cameron, Lousiana, US. Diamond Gas International is a wholly-owned subsidiary of Mitsubishi Corp.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquefaction/27042015/toho-gas-in-cameron-lng-purchase-agreement-651/