Reuters is reporting that Tokyo Gas and Royal Dutch Shell have signed a Heads of Agreement (HoA) for a purchase of LNG.
The agreement is for a quantity of 500 000 tpy of LNG and is based partly on a coal-linked pricing formula.
A spokesman from Tokyo Gas reported, “as far as Tokyo Gas and Shell know, this is the first time a pricing formula linked with a coal index has been used with LNG contracts.”
Under the HoA, Tokyo Gas will purchase LNG from Shell’s global portfolio for a period of 10 years from April 2020.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/05042019/tokyo-gas-and-shell-sign-lng-purchase-deal/