Toho Gas Co. Ltd has announced that it has entered a sale and purchase agreement (SPA) with Diamond Gas International Pte. Ltd for the purchase of LNG from the US Cameron LNG project. Diamond Gas is a wholly owned subsidiary of Mitsubishi Corp.
Toho Gas originally entered into a Heads of Agreement (HoA) with Diamond Gas on 23 April 2015. The contract that has subsequently been signed will last for 19 years, commencing 2019, and will see three cargoes per year of LNG delivered. This will equate to approximately 200 000 tpy of LNG, which will be linked to the US natural gas price.
The 12 million tpy Cameron LNG project, which will provide the LNG, is located in Hackberry, Louisiana, US. The project consists of three trains, each with a production capacity of 4 million tpy.
Edited from press release by David Rowlands