Japanese company Tohoku Electric Power said that it had signed an agreement with Mitsubishi Corp. to buy 300 000 tpa of liquefied natural gas (LNG) for a period of 16 years from 2022. The LNG will be purchased at the US Henry Hub price for natural gas.
Mitsubishi Corp. has a 16.6% stake in the US Cameron LNG project. The Louisiana terminal is currently being transformed by Sempra Energy from an import to a liquefaction facility, where it will export LNG to foreign markets.
In March, Tohoku signed a supply contract to buy 370 000 tpa LNG from Petronas’ Malaysia LNG project (MLNG) for 10 years and will commence in 2016.
In a bid to diversify supply sources and seek lower prices, other Asian companies such as Kansai Electric of Japan, Taiwan’s CPC Corp. and Toho Gas have also signed long-term sales contracts with the Cameron LNG project, which was granted export approval to non Free Trade Agreement (FTA) countries by the US Department of Energy (DOE) in February.
Since the Fukushima disaster in 2011, Japan has looked to wean itself off nuclear energy and is currently the world’s top importer of LNG.
Edited from various sources by Ted Monroe
Read the article online at: https://www.lngindustry.com/lng-shipping/25042014/tohoku_electric_power_has_signed_an_lng_supply_agreement_with_mitsubishi_corp/