Japan’s Tokyo Electric Power Co said on Friday it has signed a 17-year deal to buy up to 1.2 million tonnes per year of liquefied natural gas (LNG) from the Singapore unit of UK oil and gas major BP starting from April 2017.
The LNG will be sourced from BP’s portfolio, rather than a specific project, and the prices will be linked to the U.S. Henry Hub gas index rather than oil prices.
LNG imports by Japan, the world’s top buyer of the super-cooled fuel, has risen since 2011 when the Fukushima nuclear disaster lead to all of the country’s nuclear reactors being shut down to face more stringent safety checks.