Tokyo Gas Finalizes Deal with Curtis LNG Project

Tokyo Gas has finalized an agreement to purchase liquefied natural gas  from BG Group's Curtis LNG project in Queensland, Australia.

The agreement calls for the supply of 1.2 million tonnes of LNG per annum from QCLNG and BG’s global LNG portfolio for 20 years from 2015 last year.

Japan's largest gas utility by sales volume will also take up a 1.25% stake in the reserves and resources of some of BG subsidiary QGC’s tenements in the Walloons Fairway of the Surat Basin as well as a 2.5% interest in the second train at QCLNG.

It is the first time a Japanese buyer has committed itself to the long-term purchase of LNG produced from unconventional natural gas such as coal seam gas or shale gas, a Tokyo Gas spokesman said.

“Tokyo Gas is now an important foundation customer for our ground-breaking Queensland Curtis LNG project,” BG chairman Frank Chapman said.

The Curtis project will use coal seam gas as feedstock.