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  • Tokyo Gas executes a HOA with Shell Eastern Trading for the supply of LNG
    édité le 05/04/2019


Tokyo Gas executes a HOA with Shell Eastern Trading for the supply of LNG
Tokyo Gas Co., Ltd. (President: Takashi Uchida; “Tokyo Gas”) has executed a heads of agreement (HOA) with Shell Eastern Trading (Pte) Ltd. for the supply of liquefied natural gas (LNG).

Since three years ago, Shell Eastern Trading (Pte) Ltd. and Tokyo Gas have been engaging in joint discussions to consider a new type of LNG agreement that can contribute to creating LNG demand.

As a result, for the first time among the two companies, Shell and Tokyo Gas have come up with an innovative pricing formula that is based on coal indexation and included this to the agreement.

Under the agreement, Royal Dutch Shell plc. (“Shell”) supplies LNG to Tokyo Gas from the Shell Group’s global LNG portfolio, rather than from specific LNG projects.

The HOA will allow Tokyo Gas to secure a long-term, stable and competitive supply of LNG.

Tokyo Gas received Japan’s first-ever LNG cargo on November 4th 1969 and this year marks the 50th anniversary. Tokyo Gas Group will continue to provide stable and safe source of energy to all our customers.
Commenting on the HOA, Steve Hill, Shell’s Executive Vice President said:
“We are delighted to be partnering with Tokyo Gas and offering this innovative solution to meet their energy needs. Our broad portfolio enables us to provide reliable LNG supply as well as tailored solutions including flexible contract terms under a variety of pricing indices.”

Commenting on the HOA, Kentaro Kimoto, Tokyo Gas’s Managing Executive Officer said:
“With our long-term relationship and joint consideration, we were able to achieve an innovative agreement that would enhance further diversification of price indexation pursued by Tokyo Gas. We will continue to tackle new challenges that would contribute to the development of LNG industry. ”

About Tokyo Gas

Tokyo Gas Co., Ltd. is Japan's largest provider of city gas, serving more than 11 million customers for over 130 years, primarily in the Tokyo metropolitan area and surrounding Kanto region. We will respond to the needs of customers, society, and the next age while working to contribute to the realization of a prosperous, fulfilling way of life, competitive domestic industries, and an environment-friendly society. At the same time, recognizing our responsibility toward society, we will maintain a state of harmony with the communities in which we operate and aim to achieve sustainable growth for the Group by ensuring that we conduct management in a transparent and organized manner.

About Royal Dutch Shell plc

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects.


Origine : Communiqué Tokyo Gas



 
 
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