Toho Gas Plans to Up LNG Usage in 2015-2016 by 3.3%

Japanese utility Toho Gas plans to increase LNG usage in the fiscal year ending March 31, 2016 by 3.3 percent to 3.08 million tons.

In a statement published Tuesday the utility stated that it will take measures to build “a robust gas business,” including procuring competitive-price LNG and strengthening relationship with customers by providing a variety of services to meet diversified customer needs.

To provide a stable supply of LNG at a competitive price, Toho said it is working on optimizing an LNG procurement portfolio by diversifying supply sources, types of contracts and the price index.

“In 2017, we plan to buy LNG from Malaysia Petronas under a portfolio contract,” Toho said. The company signed an agreement regarding this on Tuesday.

During 2015-2016, Toho also plans to increase the flexibility of LNG terminal operations. It will speed up a plan to build Chita-Midorihama Works No.3 LNG tank which is set for completion in August 2016 while beginning to construct a boil-off gas (BOG) re-liquefaction device which is also expected to be complete in August 2016.

“The move is designed for us to respond to diversification of LNG procurement and operate LNG terminals flexibly and efficiently,” Toho said.