Tokyo Gas Co. Ltd. has signed a heads of agreement (HOA) for the supply of LNG from LNG Canada Project with Diamond Gas International Pte. Ltd., a fully owned subsidiary of Mitsubishi Corporation. By signing this agreement, Tokyo Gas is contributing to the start-up of the very first large scale LNG production project in Canada.
This LNG project, of which Mitsubishi Corporation holds 15% interest, is expected to produce 14 million tons per annum (mtpa) of LNG by liquefying natural gas from large reserves in Western Canada at a LNG liquefaction plant to be built in West Coast of Canada. Of the volumes to be produced, DGI will off-take 2.1 mtpa, and Tokyo Gas will purchase LNG from DGI for the period of 13 years (starting in 2026) up to 0.6 mtpa, delivered on Ex-Ship (with destination flexibilityApart from the access to abundant natural gas in Canada, the proximity of the project to Japan, which allows shipment of approximately 10 days, promises a stable long-term supply of LNG.
Tokyo Gas received Japan’s very first LNG cargo on November 4th, 1969, and 2019 marks its 50th anniversary.
