Japanese Utility to Tap Cameron LNG Supplies

Japanese utility Tohoku Electric Power has signed a long-term deal for LNG supplies from the US Sempra-led Cameron LNG plant in Louisiana.

The contract was signed with Mitsubishi’s LNG sales and shipping arm Diamond Gas International, Tohoku said in a filing on October 17. Mitsubishi is a shareholder in Cameron LNG, whose first 4mn mt/yr export train came on stream in August.

Under the deal, Tohoku will take up to 200,000 mt of LNG annually from Diamond on a delivered ex ship basis. The 18-year contract will start in 2022, with no reason given for the timing.

The agreement is line with Tohoku’s push to diversify its sources of LNG supply, the company said. It noted the deal did not include any destination clauses, meaning it can re-sell the LNG cargoes it does not need at home.

At full capacity, Cameron LNG will consist of three trains with a combined output of 12mn mt/yr. Sempra has a 50.2% stake in the project, with partners including France's Total and Japan’s Mitsui & Co, Mitsubishi and Nippon Yusen Kabushiki Kaisha.