Petronas signs new LNG supply deal with Tokyo Gas

Petronas’ subsidiary Malaysia LNG (MLNG) has signed a heads of agreement (HOA) to supply liquefied natural gas (LNG) to Tokyo Gas.

Beginning next month and running for up to 13 years, the contract will see Petronas supply around 500,000t per annum for the first six years.

For the remaining period, Tokyo Gas has the option to seek a volume increase of up to 900,000t per year.

Petronas LNG marketing and trading vice-president Ahmad Adly Alias said: “The HOA is a testament to Petronas’ strength and reliability in providing flexible solutions to accommodate the different needs of buyers.”

The agreement builds on Petronas’ 35-year business relationship with Tokyo Gas.

Alias further added: “At Petronas, we value these relationships and the trust placed in our company for a secure and reliable supply of LNG.”

MLNG is the operator of the Petronas LNG complex in Bintulu, Malaysia, which is a nine-train facility with a combined annual production capacity of around 30 million tonnes.

Last month, Petronas has reached an agreement with Dubai-based H-Energy Mideast DMCC (HEMD) for the delivery of LNG to India.