Japan’s Tokyo Electric Power (TEPCO) and BP Singapore (BPS) have entered into a 17-year agreement to buy 1.2mmt/yr tonnes per year of liquefied natural gas (LNG).
The agreement begins in April 2017 in which the LNG will be sources from BP Group’s portfolio. The prices will be linked to the US Henry Hub gas index rather than oil prices.
“The agreement will enable Tepco's steady purchase of LNG through diversification since BPS will provide LNG from various supply areas," Tepco said in a statement.
The agreement is the first long-term contract of its kind for TEPCO and will contribute to the company’s aim of purchasing LNG at competitive prices.
TEPCO was one of the recipients announced in early 2013 for contracted LNG in Papua New Guinea. First shipments are designated for late 2014.
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