11/09/2018 | Press release | Distributed by Public on 11/09/2018 04:22
RWE, one of Europe's leading energy companies, and Tokyo Gas, one of the world's largest buyers of LNG, have entered into an agreement to cooperate extensively in the LNG business. Under a wide reaching Memorandum of Understanding (MOU) for strategic cooperation, which was signed today, the two companies aspire to strengthen their ties in the area of LNG sourcing, trading and shipping activities.
As the first concrete step under the MOU, a framework has been agreed for cost reduction through LNG shipping optimization utilizing the US LNG procured by Tokyo Gas. The discussion is underway toward conclusion of the legally binding agreement on this framework and is expected to be finalized shortly. The two companies will also increase the values of their portfolios through taking advantage of short-term trading opportunities.
RWE continues to expand its LNG activities across all regions as the global LNG market continues to grow, a key element of this being Atlantic and Pacific Basin cooperation.
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.'
Takashi Higo, Executive Officer and Senior General Manager of Tokyo Gas's Gas Resources Department comments: '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 values for our customers.'