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BG/Tokyo Gas sign Japan’s first CBM-to-LNG supply deal

20-year deal will begin in 2015

BG will supply Tokyo Gas with 1.2m t/y of LNG from its CBM-to-LNG plant on Curtis Island, Queensland, Australia. The deal, which will begin in 2015 and last for 20 years, is the first fully termed sales agreement for supply to Japan of LNG sourced from CBM (known in Australia as coal-seam gas). BG sanctioned its Queensland Curtis LNG (QCLNG) plant in October last year and intends to bring the plant on stream in 2014.

The deal will also see Tokyo Gas acquire 1.2% of some of BG’s upstream assets in Queensland. The Japanese firm will also buy a 2.5% stake in QCLNG train 2. Including the new supply deal, BG Group now has sales agreements for almost 10m t/y of output. Chile, China and Singapore have also signed long-term offtake deals. BG says QCLNG will be a two-train 8.5m t/y capacity plant, with possible expansion to 12m t/y.

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