Japanese Firms Sign Australian LNG Purchase Deal

Five major Japanese firms have signed a LNG purchase deal worth $71.8 billion (US) with Australia.

The Japanese firms would be buying 4.0 million tonnes per annum (mtpa) of LNG from Australia's proposed Ichthys Project for 15 years, ahead of a final investment decision on the project.

Approximately 70 percent of the Ichthys LNG is going to be delivered to Japan.

Ichthys, which is owned by Inpex and France's Total, will supply Tokyo Electric Power Company, Tokyo Gas Co, The Kansai Electric Power Co., Osaka Gas Co., and Kyushu Electric Power Company Inc from 2017.

The project already has sales agreements with Chubu Electric Power Company, Toho Gas Co. and Taiwan's CPC Corporation.

Japan is the world's largest importer of LNG and demand for gas in the country has seen a substantial rise since a massive tsunami placed the country's nuclear energy supply under pressure in March.