Toho Gas to Buy Cameron LNG from Mitsubishi

Japanese utility Toho Gas Co. on Thursday entered into a Heads of Agreement with Diamond Gas International, a 100 percent subsidiary of Mitsubishi Corporation, for a purchase of LNG produced at the US Cameron Project.

As per the agreement, Toho Gas will annually purchase approximately 200,000 tons of LNG for 20 years from the start of production (scheduled in 2018) in the project at prices linked to the U.S. natural gas price.

“By the agreement, we will diversify supply sources and the price-index,” Toho said.

The agreement for LNG purchase from the Cameron project is the second one following the sale and purchase agreement with Mitsui & Co., Ltd. in January last year.

“We will continue diversifying LNG procurement to ensure stable city gas supply to customers at a competitive price,” Toho added.

Cameron LNG LLC., a subsidiary of Sempra Energy, plans to construct LNG liquefaction facilities in Cameron, Louisiana, US with overall capacity of 12 million tons per annum (4 million tons x 3 trains) to liquefy the U.S. natural gas, including shale gas.