Japan's Toho Gas to Buy from LNG Canada
Japanese utility Toho Gas has signed a heads of agreement with Mitsubishi Corporation’s trading unit Diamond Gas International (DGI) for purchase of LNG from Shell-operated LNG Canada project, it said October 10.
Toho will buy 0.3mn mt/yr of LNG for 15 years from DGI, which has an agreement to buy 2.1mn mt/yr of LNG from the project. Supplies to Toho will start in 2024-2025. The LNG will be delivered on an ex-ship basis with destination flexibility, it said. LNG Canada will have a capacity to initially produce 14mn mt/yr of LNG. Last week Shell said it has taken the decision to build LNG Canada.
Toho buys LNG from Indonesia, Australia, Malaysia, Qatar and Russia and said it plans to procure LNG from US soon. “Adding Canada as a new procurement area will contribute to further stabilisation of our procurement,” it said.
Another Japanese utility Tokyo Gas signed an initial agreement with DGI the same day.