Japan’s Tokyo Gas has signed a heads of agreement for the supply of liquefied natural gas from LNG Canada project with Diamond Gas International, a Mitsubishi Corporation unit.

The Shell-led LNG project in which Mitsubishi Corporation holds 15 percent interest, is expected to produce 14 million tons per annum (mtpa) of LNG by liquefying natural gas from reserves in Western Canada at an LNG liquefaction plant to be built in Kitimat.

Of all the volumes to be produced at the project, DGI will offtake 2.1 mtpa, and Tokyo Gas said it will purchase up to 0.6 mtpa of LNG on a delivered ex-ship basis.

The contract has a 13-year term and is set to start in April 2026, and last through to March 2039.

Tokyo Gas added the contract has no fixed destination clause allowing for delivery flexibility.