Malaysian energy giant Petronas signed a heads of agreement (HoA) with Japan’s Tokyo Gas for the supply of liquefied natural gas (LNG) for a period of 13 years.
Under the deal, signed through Malaysia LNG, the supply to Tokyo Gas will start in April 2018, Petronas said, noting the volumes would be at 0.5 million tonnes per annum for the first six years.
The agreement includes the potential for the volumes to increase up to 0.9 million tonnes per annum for the remaining extension period.
Tokyo Gas said in its statement the company has been buying LNG from the Malaysian Satu project since 1983, and has held discussions regarding the new deal since the current contract is set to expire by the end of March 2018.
Tokyo Gas already has two 10-year LNG supply deals in place with Petronas ending in 2024, from the Malaysia Tiga project and in 2025 from the Malaysia Dua project, both part of the Petronas LNG complex in Bintulu.
The new agreement continues the 35-year business relationship with Tokyo Gas, that saw Petronas deliver 10,000th cargo to the Japanese company in October last year.
Malaysia LNG operates the Petronas LNG complex in Bintulu, Sarawak, the nine-train facility with a combined annual production capacity of about 30 million tonnes.
LNG World News Staff