BG concludes negotiations to supply LNG to Tokyo Gas

Natural gas company BG has signed a sales agreement with Tokyo Gas, concluding negotiations announced in March 2010 for the supply of 1.2 million tonnes of Liquefied Natural Gas (LNG) a year for 20 years from 2015.

Under the agreement, Tokyo Gas will be supplied with LNG from the Queensland Curtis LNG (QCLNG) facility on Curtis Island, near Gladstone in Queensland, Australia, and from BG’s global LNG portfolio.

The QCLNG facility is being developed by BG’s wholly owned Australian subsidiary, QGC, to liquefy and export coal seam gas from QGC’s extensive acreage in the Surat Basin.

BG sanctioned QCLNG on 31 October 2010 and the plant is planned to have begun operation by 2014.