BG firms up Tokyo Gas QCLNG deal

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BG Group has finalised a contract to supply liquefied natural gas from its Queensland Curtis LNG project and its Global LNG portfolio to Tokyo Gas. Last year BG and Tokyo Gas signed a heads of agreement for the supply of 1.2 million tonnes of LNG per annum from QCLNG and BG’s global LNG portfolio for 20 years from 2015.

The Japanese utility will also take up a 1.25% stake in the reserves and resources of some of BG subsidiary QGC’s tenements in the Walloons Fairway of the Surat Basin as well as a 2.5% interest in the second train at QCLNG.

BG said the agreement was the first fully termed sales agreement for supply of LNG to Japan source from coal seam gas.

“Tokyo Gas is now an important foundation customer for our ground-breaking Queensland Curtis LNG project,” BG chairman Frank Chapman said.

BG sanctioned the $US15 billion ($A14.8 billion) two-train, 8.5 million tonnes per annum QCLNG project on Curtis Island near Gladstone in October.

First LNG exports from QCLNG are planned to start in 2014. Along with Japan, LNG cargoes are earmarked for China, Chile and Singapore.


Tuesday, 8 March 2011
EnergyNewsPremium.net
http://www.energynewspremium.net/StoryView.asp?StoryID=2382895

BG Group has finalised a contract to supply liquefied natural gas from its Queensland Curtis LNG project and its Global LNG portfolio to Tokyo Gas. Last year BG and Tokyo Gas signed a heads of agreement for the supply of 1.2 million tonnes of LNG per annum from QCLNG and BG’s global LNG portfolio for 20 years from 2015.

The Japanese utility will also take up a 1.25% stake in the reserves and resources of some of BG subsidiary QGC’s tenements in the Walloons Fairway of the Surat Basin as well as a 2.5% interest in the second train at QCLNG.

BG said the agreement was the first fully termed sales agreement for supply of LNG to Japan source from coal seam gas.

“Tokyo Gas is now an important foundation customer for our ground-breaking Queensland Curtis LNG project,” BG chairman Frank Chapman said.

BG sanctioned the $US15 billion ($A14.8 billion) two-train, 8.5 million tonnes per annum QCLNG project on Curtis Island near Gladstone in October.

First LNG exports from QCLNG are planned to start in 2014. Along with Japan, LNG cargoes are earmarked for China, Chile and Singapore.


Tuesday, 8 March 2011
EnergyNewsPremium.net
http://www.energynewspremium.net/StoryView.asp?StoryID=2382895