UPDATE: Tokyo Gas Signed Contract To Buy 1.2 Million Tons/Year Curtis LNG

Tokyo Gas Co. (9531.TO) said it signed a contract Monday with BG Group (BG.LN) to buy 1.2 million metric tons a year of liquefied natural gas for 20 years from 2015 from BG's Curtis LNG project in Queensland, Australia.

Japan's largest gas utility by sales volume said it also signed a contract to buy a 1.25% stake in a gas field and a 2.5% stake in the No. 2 liquefaction train in the project from BG.

It is the first time a Japanese buyer has committed itself to the long-term purchase of LNG produced from unconventional natural gas such as coal seam gas or shale gas, a Tokyo Gas spokesman said. The Curtis project is to use coal seam gas as feedstock.

The commitment will support the Curtis LNG project and diversify Tokyo Gas's supply to include both rich and lean LNG, the spokesman said.

Tokyo Gas and BG Group had signed a preliminary LNG agreement in March of last year.

-By Mari Iwata, Dow Jones Newswires; 813-6269-2798; [e-mail]