Tokyo Gas and Centrica sign MoU to swap LNG
November 21, 2016
Tokyo Gas signed an MoU with Centrica today. Under the terms of the MoU, a framework has been agreed whereby both companies will work together to optimise contracted volumes from both Atlantic and Asia-Pacific markets through location swaps, which would achieve LNG transportation savings and lower the overall cost of LNG procurement. Tokyo Gas will procure FOB LNG from the Cove Point LNG project in the U.S.
Swap volumes could reach up to 1.4mtpa. Both companies intend to enter into a legally binding contract on the basis of this framework.
Edited from Centrica press release.