Tokyo Gas Co., Ltd. has signed a Memorandum of Understanding (MOU) on mutual cooperation with RWE Supply & Trading, the trading arm of the leading European utility RWE AG.
With this MOU signed for strategic cooperation, both companies aspire to strengthen their ties, mainly in the area of LNG sourcing. As the first concrete step under the MOU, a framework has been agreed for cost reduction through LNG shipping and trading optimisation, utilising the US LNG procured by Tokyo Gas. Discussions are underway, with progress being made towards a conclusion of the legally binding agreement on this framework.
Takashi Higo, Executive Officer and Senior General Manager of Gas Resources Department of Tokyo Gas said: “Through the collaboration with RWE with its diverse LNG portfolio both in the Atlantic and Asian markets, we aim to expand flexible LNG transactions bridging Asia, North America and Europe. It should contribute to price competitiveness and stability of our LNG supply and maximise the value for our customers.”
Andree Stracke, Chief Commercial Officer of RWE Supply & Trading says: “We are pleased to be entering into this agreement with Tokyo Gas today which provides us with the opportunity to strengthen our ties with one of the most important LNG players in Asia. As new production comes online in the next few years, especially from the US, Europe will undoubtedly play a larger role as a key demand hub and we will continue to take advantage of these opportunities through LNG trading. We look forward to work together with Tokyo Gas during this exciting time for the LNG business.”