Tokyo Gas starts LNG contract revision
Japan’s biggest city gas supplier, Tokyo Gas is looking to secure more flexible LNG supply deals with favorable terms as it engages in talks to renew the existing deals.
Speaking at an energy conference, Takashi Higo, senior general manager at the gas resources department of Tokyo Gas, noted the company is renegotiating deals eyeing price revision, Reuters reports.
The company currently has 12 supply deals in place and the reviews come following Japan’s Fair Trade Commission’s ruling that the destination clauses restricting further resale of liquefied natural gas cargoes are anti-competitive.
Such decision is expected to boost the trading among Japanese buyers.
Out of the 12 deals, the one with Qatargas is the first set to expire in 2021, while the one for the delivery of liquefied natural gas from the Chevron-led Gorgon LNG project in Australia will expire in 2039.
LNG World News Staff