Sumitomo Corporation announced that Sumitomo has entered into Heads of Agreement (HoA) for sale and purchase of LNG with Kansai Electric Power Co, Inc under which Sumitomo has agreed to sell 0.8 million tonne per annum of LNG from the U.S. Cove Point LNG Project.
The project will involve a construction of a new natural gas liquefaction facility at the existing Cove Point LNG Terminal currently in operation as a LNG receiving terminal in Maryland, USA planned by Dominion Cove Point LNG, LP.
The contracted quantity for the liquefaction service of the Project is estimated to be approximately 4.6 million tonne per annum. After several processes such as issuance of an authorisation granted from the US Department of Energy to export LNG to non FTA countries, the project will start operation in mid to late 2017.
Sumitomo has entered into LNG HoA with KEPCO. The company has signed the Terminal Service Agreement with Dominion for liquefaction service to liquefy natural gas to LNG, the volume of 2.3 million tonne per annum for export.
