Tokyo Gas chief sees LNG destination flexibility spreading worldwide

[CMOP + 227]

Japan’s biggest city gas seller Tokyo Gas Co expects that contracts for liquefied natural gas (LNG) cargoes with destination flexibility will spread from the West and Japan to be a common thing worldwide, the company’s new president said.

“The global trend is clearly toward lifting destination clauses. It is a buyer’s market now, so we can get good conditions, and we would continue to consider taking a long-term deal if conditions were good.”

Tokyo Gas is expected to take the first delivery of LNG from the Cove Point project in the U.S. state of Maryland some time in April to June. The company has a contract to buy 1.4 million tonnes per annum of LNG for 20 years from Cove Point, its first procurement of U.S. shale gas.