Tokyo Gas signs agreement to purchase LNG from LNG Canada project
The company will purchase LNG from Diamond Gas International for the period of 13 years starting in 2026
Tokyo Gas Company has signed an agreement for the supply of LNG from LNG Canada Project with Diamond Gas International, 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 a 15% interest, is expected to produce 14 million tons of LNG a year by liquefying natural gas from large reserves in Western Canada at a gas liquefaction plant to be built in West Coast of Canada.
Of the volumes produced, Diamond Gas International will offtake 2.1 mtpa, and Tokyo Gas will purchase LNG from Diamond Gas International for the period of 13 years starting in 2026, for volume of up to 0.6 mtpa delivered on Ex-Ship (with destination flexibility). On top of the access to abundant natural gas in Canada, the proximity of the project to Japan, which allows the shipment to take only about 10 days, promises a stable long-term supply of LNG.
