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    Petronas Inks Tokyo Gas LNG Deal

Summary

A new contract offers the buyer the chance to take more LNG after the initial period expires.

by: William Powell

Posted in:

Natural Gas News, Asia/Oceania, Corporate, Contracts and tenders, Infrastructure, LNG, News By Country, Japan, Malaysia

Petronas Inks Tokyo Gas LNG Deal

Malaysian state producer Petronas has signed a preliminary agreement with Tokyo Gas for up to 13 years' supply of LNG starting next month, it said March 14.

Under the terms of the agreement, the initial volume is to be 0.5mn metric tons/yr for the first six years, with the possibility of a volume increase of up to 0.9mn mt/yr for the remaining extension period. 

Petronas vice-president of LNG Marketing & Trading, Ahmad Adly said the company would continue to deliver LNG "through its integrated operations that allow for both long-term and short-term solutions for its customers. The Heads of Agreement is a testament to Petronas’ strength and reliability in providing flexible solutions to accommodate the different needs of buyers,” he added.

Petronas has been selling LNG to Tokyo Gas for 35 years, delivering last October its 10,000th cargo to the Japanese gas company. “At Petronas, we value these relationships and the trust placed in our company for a secure and reliable supply of LNG,” added Ahmad Adly. 

Petronas-run Malaysia LNG operates the nine-train, 30mn mt/yr complex in Bintulu, Sarawak, one of the world’s largest LNG complexes operating on a single site.