Centrica, Tokyo Gas Agree on LNG Co-operation
Centrica and Tokyo Gas have entered into a memorandum of understanding to collaborate in the LNG sector, the two companies said in separate statements November 21.
The two companies will work together to optimise contracted volumes from both Atlantic and Asia-Pacific markets through location swaps, which they believe, would achieve LNG transportation savings and lower the overall cost of LNG procurement.
“As the first concrete measure under this MoU, the two companies have agreed to optimise LNG Tokyo Gas procures from the US with LNG Centrica procures in the Asia Pacific region on a cargo unit basis,” Tokyo Gas said.
Both companies intend to enter a legally binding contract based on this framework.
Tokyo Gas is the biggest utility in Japan and one of the largest LNG importers in the world. Centrica supplies energy and energy-related services to customers in the UK, Ireland and North America.