Japan’s Tokyo Gas, Shizuoka Gas seal LNG supply deal

Japan’s city gas supplier and LNG importer, Tokyo Gas, has signed a deal with compatriot Shizuoka Gas to supply the latter with liquefied natural gas.

In the medium- to long-term, Tokyo Gas will deliver five LNG cargoes per year, with one cargo equivalent to 60,000-70,000 tons, to Shizuoka Gas, according to a Tokyo Gas statement.

The DES (delivered ex-ship) LNG supplies will start in 2027.

Tokyo Gas said the LNG volumes will be supplied from LNG projects contracted by the company.

This is the first time that the company and Shizuoka Gas have entered into a medium- to long-term LNG sales and purchase agreement.

Furthermore, this agreement will make Tokyo Gas one of Shizuoka Gas’s main suppliers.

“Amidst rising geopolitical risks in recent years, price fluctuations in the energy market have become increasingly volatile, highlighting the growing importance of diversifying LNG procurement channels,” Tokyo Gas said.

“This agreement will contribute to the diversification of LNG procurement channels through the expansion of domestic LNG trading, thereby improving energy security in Japan,” Tokyo Gas added.

In Japan, Tokyo Gas owns four LNG import terminals (Sodegaura, Negishi, Ohgishima, and Hitachi), and it buys LNG from various countries in the world, including the US, Qatar, Malaysia, etc.

According to the Tokyo Gas website, the company currently imports LNG from ten projects in six countries.

Most recently, Tokyo Gas signed a 20-year deal to buy LNG from US LNG exporter Venture Global LNG.

The LNG supplies are scheduled to start in 2030.

Glenfarne-led Alaska LNG also signed a letter of intent with Tokyo Gas to sell LNG to the latter.