The utility is interested in short- and medium-term supply deals, in addition to the long-term contracts for LNG volumes it currently has with producers in six countries, including the US, Atsunori Takeuchi, senior general manger of LNG optimization and trading, said in a video address to the World LNG & Gas Series Americas Summit & Exhibition in Lake Charles.
Tokyo Gas’ expansion of its LNG supply sources has previously included non-traditional contracts. In 2019, for instance, it announced an LNG contract with Royal Dutch Shell that was partly linked to coal prices. As global trade flows shift amid volatile LNG prices in end-user markets, Tokyo Gas, as a major consumer of the super-chilled power plant fuel, wants to ensure it has sufficient supplies in the future at a cost that reduces or mitigates its risk.
“To establish a global LNG network, we will work with our partners to build business relationships linking Europe, Asia and North America,” Takeuchi said.
In the US, Tokyo Gas has a long-term offtake commitment to buy LNG from the Berkshire Hathaway-operated Cove Point Liquefaction terminal in Maryland, It also has a long-term deal to buy LNG produced at Sempra Energy’s Cameron LNG terminal in Louisiana, via an agreement with an equity partner in the terminal.
Beyond those agreements, Takeuchi said Tokyo Gas was also considering short-term and medium-term LNG contracts. Despite elevated US Henry Hub gas prices this year, the executive said linking to Henry Hub remained a viable option.
