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Tokyo Gas inks nonbinding deal to acquire LNG Canada supply

The Tokyo-based natural gas provider Tokyo Gas Co. Ltd. signed a nonbinding agreement to acquire liquefied natural gas from the LNG Canada export project through a subsidiary of Mitsubishi Corp., a participant in the Royal Dutch Shell PLC-led project.

Under the heads of agreement, Tokyo Gas looks to procure around 600,000 tons of LNG per annum from the Mitsubishi unit Diamond Gas International Pte. Ltd., with the shipments to be delivered on an ex-ship basis. The deal is scheduled to be effective starting April 2026 up to March 2039, according to an Oct. 10 news release.

Another Japanese natural gas company, Toho Gas Co. Ltd., recently signed a nonbinding agreement with Diamond Gas International to purchase LNG from LNG Canada.

Along with other participants of the LNG Canada joint venture, Mitsubishi will provide natural gas supply and individually off-take and market its share of LNG. The C$40 billion project would initially have two liquefaction trains capable of producing 14 million tonnes per annum of LNG, with an export capacity of over 2 Bcf/d in its first phase.