Japan: Three Majors Make Deal on Emergency Backup Gas Supply
Tokyo Gas Co., Ltd., Shizuoka Gas Company, Ltd. and INPEX CORPORATION announce that, in order to meet the energy security needs in an emergency, Tokyo Gas, Shizuoka Gas and INPEX have reached an agreement for reciprocal backup supply of natural gas in an emergency.
In the case of supply disabilities occurring from damages to their natural gas supply infrastructure such as LNG terminals and gas pipeline networks caused by natural disasters, the three companies accommodate natural gas each other through their existing pipelines that are already connected.
Outline of the agreement
- If there occurs a trouble in natural gas supply in the Shizuoka Gas (or Tokyo Gas) service area, INPEX will supply backup natural gas to Shizuoka Gas (or Tokyo Gas), and then if INPEX needs gas to make up, Tokyo Gas (or Shizuoka Gas) will supply backup natural gas to INPEX.
- If there occurs a trouble in natural gas supply in the INPEX supply area, Shizuoka gas and/or Tokyo gas will supply backup natural gas to INPEX.
- Premises of the backup supply of natural gas in an emergency
The natural gas emergency backup scheme is based on the assumption that the three companies should secure their own stable natural gas sources. Backup gas volume and the terms etc under the Agreement will be decided and agreed after the negotiations by the three companies when natural disasters occur.
LNG World News Staff, June 22, 2012