BG ties up Tokyo Gas for Queensland LNG

Tokyo: BG Group has announced that it has signed a contract with Japan's Tokyo Gas Co to export liquefied natural gas produced from its Queensland project in Australia. The deal is expected to be worth $A20 billion.

This is the second major deal by BG Group. BG Group, the third largest natural gas producer in UK, signed a $60 billion export deal with a Chinese firm to export gas produced in the Surat Basin last week.

According to the agreement, BG will supply 9.5 million tons of LNG a year to Tokyo Gas for 20 years starting in 2015.

The Queensland project of BG Group is one of the five projects in Queensland State which converts coal seam gas to LNG targeting Asian demand for cleaner burning fuels.

(Source: Sea Trade Asia)