Japan’s Toho Gas Co. Ltd. struck a sale and purchase agreement with Mitsubishi Corp. unit Diamond Gas International Pte. Ltd. for liquefied natural gas (LNG) from Sempra Energy’s Cameron LNG LLC export terminal in Hackberry, LA. The agreement is for about 200,000 tons per annum at three cargos per year for 19 years beginning in 2019. The price is indexed to U.S. natural gas prices. Toho did not disclose what U.S. index was used. Cargos are to be delivered ex-ship, with the seller arranging transport. However, Toho said destination flexibility is allowed for by prior agreement between the parties. “We…strive for LNG procurement diversification, including diversification of the price-index, supply sources and types of contracts to ensure a stable energy supply to customers at a competitive price,” Toho said.
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