Tokyo Gas Co., Ltd. (Tokyo Gas) signed Friday (Nov 9) a Memorandum of Understanding on Mutual Cooperation (MoU) with RWE Supply & Trading, the trading arm of the leading European utility RWE AG.

Tokyo Gas Signs Memorandum of Understanding on Mutual Cooperation with RWE (Germany)

RWE is one of the largest energy supplier in Europe providing electricity and natural gas in Germany, UK, Czech, etc. It is actively engaging in LNG trading as well based on the markets in Europe, Asia and Middle East.

With this MOU signed for strategic cooperation, both companies aspire to strengthen the ties mainly in the area of LNG sourcing. As the first concrete step under the MOU, a framework has been agreed for cost reduction through LNG shipping and trading optimization utilizing the US LNG procured by Tokyo Gas. The discussion is underway toward conclusion of the legally binding agreement on this framework.

"Tokyo Gas will keep on promoting global alliance with partners across the countries in order to enhance the LNG value chain as targeted in our management plan, “GPS 2020”."

Tokyo Gas received Japan’s first ever LNG cargo on November 4th, 1969, and 2019 will mark the 50th anniversary. 

Takashi Higo, Executive Officer and Senior General Manager of Gas Resources Department of Tokyo Gas says: "Through the collaboration with RWE with its diverse LNG portfolio both in the Atlantic and Asian markets, we aim to expand flexible LNG transactions bridging Asia, North America and Europe. It should contribute to price competitiveness and stability of our LNG supply and maximize the value for our customers.”

Andree Stracke, Chief Commercial Officer of RWE Supply & Trading says: “We are pleased to be entering into this agreement with Tokyo Gas today which provides us with the opportunity to strengthen our ties with one of the most important LNG players in Asia. As new production comes online in the next few years, especially from the US, Europe will undoubtedly play a larger role as a key demand hub and we will continue to take advantage of these opportunities through LNG Trading. We look forward to work together with Tokyo Gas during this exciting time for the LNG business.”

Source: Tokyo Gas