Japan's Tokyo Gas signed an agreement with Mitsubishi, a joint venture partner of the LNG Canada Project, for the supply of LNG from the project, the company said on Wednesday.
Tokyo Gas said that by signing this agreement to acquire 0.6 million tonnes of LNG per annum, it is contributing to the start-up of the very first large-scale LNG production project in Canada.
"Tokyo Gas will purchase LNG for the period of 13 years starting in 2026," the company noted. LNG Canada is expected to produce 14 million tons of LNG per annum by liquefying natural gas from large reserves in Western Canada at a LNG liquefaction plant to be built in the West Coast of Canada.
The project is a joint venture comprised of Royal Dutch Shell, through its affiliate Shell Canada Energy (40 percent), Petronas, through its wholly-owned entity, North Montney LNG Limited Partnership (25 percent), PetroChina, through its subsidiary PetroChina Canada Ltd. (15 percent), Mitsubishi Corporation, through its subsidiary Diamond LNG Canada Ltd. (15 percent), and Korea Gas Corporation, through its wholly-owned subsidiary Kogas Canada LNG Ltd (5 percent).
