Mitsubishi Corp. and Tokyo Electric Power Co. said Friday they have agreed to jointly procure and market liquefied natural gas tapped in Oman, starting in April.
The deal will allow the two to provide a stable supply of LNG to customers in both Japan and the United States, while enabling Tepco to respond to fluctuations in LNG demand in the two nations, they said.
The companies will press ahead with the joint operation via Celt Inc., a 50-50 joint venture they set up in Japan in January. Tepco invested in the venture via its subsidiary, Tepco Trading Co.
The deal follows a purchase agreement between Mitsubishi and Qalhat LNG SAOC, an Omani producer, in July 2004. It calls for Qalhat to supply 800,000 tons a year during a 15-year period starting this year on a free-on-board basis.