Toyota Tsusho Corporation (TTC) has signed a Sales Agreement with Walloons Coal Seam Gas Company Pty Ltd, a subsidiary of BG Group plc – owner of the Queensland Curtis LNG Project.
According to the agreement, TTC will supply coal bed methane over 20 years, which can serve as a feed gas for Queensland Curtis LNG.
Queensland Curtis LNG constitutes the world’s first coal bed methane LNG Project, moreover this is the first long term coal bed methane sales agreement for a Japanese company.
In conjunction, TTC has announced plans to invest in the coal bed methane development program with about AUS $ 300m investment. The Queensland Curtis LNG project itself is expected to begin LNG production in 2014. The unit has already secured long term LNG sales with Japanese power companies.
According to TTC, the coal bed methane agreement is hoped to contribute to the procurement of a stable and flexible LNG supply for Japan.