Tokyo Gas and Shizuoka Gas said on Friday that they have signed a mid- to long-term contract under which Tokyo Gas will supply five liquefied natural gas cargoes annually to the smaller firm, starting in 2027.
The deal will make Tokyo Gas one of Shizuoka Gas' main suppliers, the companies said in a statement.
The deal is aimed at diversifying LNG procurement channels through expanded domestic trading, thereby strengthening Japan's energy security amid heightened geopolitical tensions and volatile energy markets.
Tokyo Gas intends to boost procurement flexibility by expanding its operations and diversifying its supply chains to secure a stable supply.
LNG from projects contracted by Tokyo Gas will be supplied under delivered ex ship (DES) terms, with each cargo amounting to about 60,000 to 70,000 tonnes.
A Tokyo Gas spokesperson declined to comment on contract duration and pricing, noting that similar contracts have been signed with other Japanese LNG buyers.
In a separate move, Tokyo Gas said its US subsidiary has agreed to sell its 33.33 per cent stake in Birdsboro Power Holdings II, which operates a natural gas-fired power project in Pennsylvania, to Strategic PPAV, a fund managed by Strategic Value Partners, for an undisclosed sum.
(Reporting by Yuka Obayashi; Editing by Kim Coghill)
