Apr. 01, 2013
Sumitomo Corporation

Sumitomo Corporation and Kansai Electric Power Co., Inc. sign the Heads of Agreement for sale and purchase with Cove Point LNG

Sumitomo Corporation(Head Office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura)(hereinafter referred to as "Sumitomo") announced today that Sumitomo has entered into Heads of Agreement for sale and purchase of liquefied natural gas (hereinafter referred to as "LNG") (hereinafter referred to as "LNG HoA") with Kansai Electric Power Co., Inc. (Head Office: Osaka-Shi, Osaka; President and CEO: Makoto Yagi) (hereinafter referred to as "KEPCO") under which Sumitomo has agreed to sell 0.8 mtpa of LNG from the U.S. Cove Point LNG Project (hereinafter referred to as "the Project").

The Project will involve a construction of a new natural gas liquefaction facility at the existing Cove Point LNG Terminal currently in operation as a LNG receiving terminal, in Maryland (MD) USA planned by Dominion Cove Point LNG, LP (hereinafter referred to as "Dominion"). The contracted quantity for the liquefaction service of the Project is estimated to be approximately 4.6 mtpa. After several processes such as issuance of an authorization granted from the U.S. Department of Energy to export LNG to non-FTA countries, the Project will start operation in mid to late 2017. Sumitomo has entered into LNG HoA with KEPCO, given the fact that Sumitomo, through Pacific Summit Energy LLC, a wholly owned subsidiary, has signed the Terminal Service Agreement with Dominion for liquefaction service to liquefy natural gas to LNG, the volume of 2.3 mtpa for export.

Sumitomo will endeavor to export LNG from the USA, the world's largest natural gas producer, in order to contribute to a security of LNG supply for Japan.


  • Seller : Sumitomo Corporation
  • Buyer : Kansai Electric Power Co., Inc.
  • Term : 20 years from the Project start date
  • LNG Quantity : Approximately 800,000 tons per annum
  • Contract Price : U.S. natural gas (Henry Hub) index linked formula
  • Delivery Terms : Free on Board

<Terminal Service Agreement>

  • Customer : Pacific Summit Energy LLC
  • Operator : Dominion Cove Point LNG, LP※
  • Term : 20 years from the Project start date
  • Quantity : Approximately 2,300,000 tons per annum

※ Dominion Cove Point LNG, LP : wholly owned subsidiary of Dominion Resources, a private utility company who serves gas and power to nearly 6 million utility and retail energy customers across 15 states in the Northeast, USA.



Corporate Communications Department, Sumitomo Corporation
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