BG Group And Tokyo Gas Sign 20 Year LNG Sales Pact

BG Group PLC (BG.LN), said Monday that it has signed a sales agreement with Tokyo Gas Co., Ltd. concluding negotiations announced in March 2010 for the supply of 1.2 million tons of Liquefied Natural Gas or LNG a year for 20 years from 2015.

MAIN FACTS:

-Under the agreement, Tokyo Gas will be supplied with LNG from the Queensland Curtis LNG or QCLNG facility on Curtis Island, near Gladstone in Queensland, Australia, and from the Group's global LNG portfolio.

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

-BG Group sanctioned QCLNG on Oct. 31, 2010 and the plant is planned to come onstream by 2014.

-The agreement is the first fully termed sales agreement for supply to Japan of LNG sourced from coal seam gas.

-In addition to the LNG sale, under the terms of the related agreements executed Monday:

*Tokyo Gas will acquire a 1.25% equity interest in the reserves and resources of certain BG Group tenements in the Walloons Fairway of the Surat Basin in Queensland. Tokyo Gas will reimburse BG Group for 1.25% of costs incurred in respect of the tenements; and

*Tokyo Gas will become a 2.5% equity investor in QCLNG Train 2, the second of two liquefaction trains which will form the first phase of the QGC-operated QCLNG development. Tokyo Gas will reimburse BG Group for 2.5% of costs incurred in respect of Train 2.

-BG shares closed Friday at GBP14.76, valuing the company at GBP50 billion.

-By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; razak.baba@dowjones.com

Tokyo Gas (PK) (USOTC:TKGSY)
Historical Stock Chart
From Jan 2025 to Feb 2025