UK’s Centrica signed a memorandum of understanding with Tokyo Gas of Japan to cooperate on liquefied natural gas activities.
Under the terms of the agreement, a framework has been agreed whereby both companies will work together to optimize 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.
According to Centrica’s statement, the two companies intend to sign a legally binding contract on the basis of the framework.
Commenting on the MOU, Jonathan Westby, Centrica’s co-managing director of energy, marketing & trading noted that the alliance with Tokyo Gas allows the company to expand its LNG activities in Asia Pacific.
Tokyo Gas’ executive officer, Kentaro Kimoto added that the cooperation would enable both companies to lower LNG procurement costs.