Centrica has entered into a Memorandum of Understanding (MOU) with Tokyo Gas Co Ltd, Japan’s largest natural gas utility.
The MOU establishes an alliance between Centrica and Tokyo Gas in their LNG activities.
Under the terms of the MOU, a framework has been agreed whereby both companies will work together to optimise contracted volumes from both Atlantic and Asia-Pacific markets through location swaps, which would achieve LNG transportation savings and lower the overall cost of LNG procurement.
Both companies intend to enter into a legally binding contract on the basis of this framework.
Commenting on the MOU, Jonathan Westby, Centrica’s Co-Managing Director of Energy, Marketing & Trading said: “We are delighted to formalise our long-standing relationship with Tokyo Gas and we welcome the opportunity to expand our LNG activities in Asia Pacific. Building alliances, such as this, helps towards lowering LNG procurement costs and this can benefit customers around the world.”
Kentaro Kimoto, Tokyo Gas’ Executive Officer said: “I am hoping that the global LNG market will be activated by flexible LNG diversion across Pacific and Atlantic regions under our collaboration with Centrica. Through initiatives like this opportunity, we will make further efforts to lower LNG procurement cost in order to enhance our customer value.”