Japan’s Tokyo Gas signed a heads of agreement with Diamond Gas International, a fully owned subsidiary of Mitsubishi Corp, to buy about 200,000 mt/year of LNG, or three cargoes a year, from the US Cameron project for 19 years from 2020, the gas utility said Wednesday. The contract is linked to the US Henry Hub price and cargoes will be delivered on an ex-ship basis with no destination restrictions, Tokyo Gas said. With this agreement, Tokyo Gas will procure 2.12 million mt/year of US LNG linked to the Henry Hub price from 2020 onwards, accounting for 12-15% of its overall portfolio, the utility said. Tokyo Gas has earlier talked about its plan to start LNG trading, but Executive Officer and General Manager Kentaro Kimoto was cautious Wednesday. “We are not in the environment where trading comes easy,” he said. Swapping cargoes and optimizing Tokyo Gas’ LNG fleet would be […]