Tokyo Gas to Consider Procuring Alaska LNG

Tokyo, Oct. 24 (Jiji Press)–Tokyo Gas Co. said Friday that it has signed a letter of intent for a liquefied natural gas development project in Alaska with a subsidiary of Glenfarne Group LLC, which leads the project. Tokyo Gas will consider procuring 1 million tons of LNG annually from the Alaska project starting around 2030. The letter of intent is an initial-stage procedure to examine the possibility of procurement and is not legally binding. As U.S. President Donald Trump backs the project, the participation of Japanese companies in the project was a major issue in the two countries’ tariff negotiations. A joint statement released after the negotiations were concluded stated that Japan would explore a new Alaska LNG purchase deal. In September, Jera Co., Japan’s largest power generation company, also signed a letter of intent with Glenfarne. Jera is considering purchasing 1 million tons of LNG per year for 20 years. The LNG project aims to install about 1,300 kilometers of pipeline from northern to southern Alaska and produce about 20 million tons per year. The total project cost is seen exceeding 6 trillion yen. Tokyo Gas signed a letter of intent with another U.S. company in 2017, but it expired in June. END [Copyright The Jiji Press, Ltd.]