By CHOU HUI HONG, TSUYOSHI INAJIMA & EMI URABE
TOKYO (Bloomberg) -- Tokyo Electric Power
is in talks with BP to buy 500,000 mtpy of liquefied natural
gas, according to two people with knowledge of the
Tepco will pay for the fuel using a formula linked to both
gas and oil prices, said the people, who asked not be
identified because they arent authorized to speak to the
The company is negotiating with potential suppliers to buy
as much as 1.2 MMtpy of LNG, said Yusuke Kunikage, a spokesman
for Tepco, declining to provide further details. Lynda Goh, a
spokeswoman for BP in Singapore, declined to comment.
Tepco currently buys 20.56 MMtpy of LNG through term
contracts, according to data compiled by Bloomberg. Prices in
long-term LNG purchase contracts, which usually run for more
than 10 years, are typically linked to Brent crude, or the
so-called Japan Crude Cocktail.