Tepco to Buys Shale Gas Based LNG from US

Tokyo Electric Power Co (Tepco), plans to buy 800,000 tons of LNG a year from the United States through Mitsubishi Corp and Mitsui & Co from about 2017, Reuters said citing a report in Nikkei.

The Japanese business daily said that Mitsubishi and Mitsui are negotiating with Cameron LNG to outsource liquefaction operations for North American shale gas.

Mitsubishi and Mitsui will likely aim to export 4 million tons a year of LNG to Japan from a Cameron LNG terminal in Louisiana and allot 400,000 tons to Tepco, the Nikkei said. Tepco may invest about $216 million to build dedicated tanks for the LNG.

The company plans to diversify LNG procurement by turning to Canada, South America and other regions, the daily reported, Reuters said.