Global Markets: Tokyo Gas plans to diversify its LNG procurement portfolio

Japanese gas utility Tokyo Gas intends to diversify its LNG procurement portfolio, but will not seek to raise its LNG purchases from the United States. The group recently began to receive LNG volumes from Dominion Energy’s Cove Point liquefaction terminal (Maryland, US) and has also signed agreements to purchase fuel from the Cameron LNG project (Louisiana, US). However, Tokyo Gas will rather seek to have the most diversified LNG supply portfolio as possible.

Tokyo Gas recently signed agreements to procure LNG from Canada and Mozambique. In June 2018, Tokyo Gas and Centrica signed a non-binding Heads of Agreement (HoA) with Anadarko Petroleum to buy 2.6 Mt/year of LNG from the start-up of production at the Mozambique LNG project in Cabo Delgado (Mozambique). In October 2018, it signed another non-binding HoA to procure LNG from LNG Canada in Kitimat (Canada) with Diamond Gas International, a Mitsubishi Corporation unit, under the terms of which Tokyo Gas said it will purchase up to 0.6 Mt/year of fuel on a delivered ex-ship basis over a 13-year period (2026-2039).

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