Malaysian energy giant and LNG player Petronas, signed a deal with Japan’s JERA for the supply of approximately 2.5 million tons of liquefied natural gas per year.
The heads of agreement (HoA) signed through Petronas’ unit, Malaysia LNG, has a three-year term starting in April 2018.
Malaysia LNG operates the Petronas liquefied natural gas complex in Bintulu, Sarawak, a nine-train facility with a combined annual production capacity of about 30 million tons.
LNG buying giant JERA, a joint venture between Tokyo Electric Power and Chubu Electric Power , said the volumes will be delivered both on a DES (delivered ex ship) and FOB (free on board) basis.
JERA noted in its statement that the destination clause in the deal is “line with the survey on LNG trades report released by the Japan Fair Trade Commission in June 2017.”
The company added the volumes will contribute to its ability not only to respond to uncertainties in LNG demand but also to optimize its LNG operations.