TEPCO and Tokyo Gas Announce LNG Sales Agreement on Darwin LNG Project; LNG Purchase Agreement Signed for LNG Project in Darwin - Creates LNG Value Chain from Gas Field Development and Production to In-Company Consumption of Produced Gas.TOKYO -- Today Tokyo Electric Power Co. (TEPCO TEPCO Tokyo Electric Power Co. (Japan) ) and Tokyo Gas Co., Ltd. signed a LNG LNG (liquefied natural gas): see under natural gas. purchase agreement with Darwin LNG Pty Ltd., the LNG seller, for the LNG project in Darwin, Northern Territory “Port Darwin” redirects here. For the old name of Falkland Islands, see Darwin, Falkland Islands. Darwin is the capital city of the Australian Territory of the Northern Territory. , Australia. The contract has been in negotiation based on a basic agreement (Heads of Agreement Heads of Agreement A non-binding document outlining the main issues relevant to a tentative partnership agreement. Notes: It is the draft used by lawyers when drawing up the contract. It serves as a guideline for both parties before any documents are legalized. : HOA HOA see hypertrophic osteopathy. ) signed on March 11th, 2002. The agreement is flexible and economical, permitting expansion of LNG transportation destinations beyond the companies' terminals under certain conditions and allowing FOB FOB 1) adj. short for Free on Board, meaning shipped to a specific place without cost. 2) Friend of Bill (Clinton). (See: Free on Board) (Free on Board) as the delivery condition. This will allow the companies to adapt to changes in the business environment such as deregulations in the energy market. Contract volume is reported at 2 million ton per year (average year) for TEPCO, and 1 million ton per year (average year) for Tokyo Gas Co., Ltd. Both companies will arrange for transport using their own LNG ships. Both companies are participants in the Darwin LNG Project, which includes gas field development and production operations, gas pipeline business and gas liquefying plant operations, and believe that consuming LNG produced by gas fields (Bayu-Undan Gas Field) in this project will enable them to construct an integrated LNG value chain, which will make acquisition of fuel and raw materials more stable and economical.
Parties Concerned: Seller: Darwin LNG Pty Ltd.
Buyer: TEPCO; Tokyo Gas Co., Ltd.
Contract Volume: TEPCO, Inc.: 2 million ton / year
Tokyo Gas Co., Ltd.: 1 million ton / year
Contract Length: 17 years starting January, 2006
Delivery Format: FOB (Both companies arrange and transport LNG
ships)
See appendix at: http://www.tepco.co.jp/en/press/corp-com/release/betu05_e/images/05080 8e1.pdf (Due to its length, this URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) |
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