Malaysia LNG Sdn Bhd (MLNG), a subsidiary of PETRONAS, today signed a Sale and Purchase Agreement (SPA) with Chubu Electric Power Co. Inc., (Chubu Electric) to supply up to 540,000 metric tonnes per annum of liquefied natural gas (LNG) for 20 years beginning 2011.
The LNG will be supplied to Chubu Electric from the PETRONAS LNG Complex in Bintulu, Sarawak. The LNG will be transported from Bintulu to Chubu Electric’s receiving terminals in Chita, Yokkaichi and Kawagoe, Japan on ex-ship basis by LNG tankers owned and operated by MISC Bhd., a subsidiary of PETRONAS.
Chubu Electric is the third largest power company in Japan, supplying electricity to about 16 million people in five prefectures in central Japan. Chubu Electric is also the second largest importer of LNG in Japan.
The relationship between MLNG and Chubu Electric started in June 1991 when the two parties signed a Spot Sale and Purchase Agreement for the supply of four spot ex-ship cargoes of LNG to the Japanese customer that year. Through another agreement signed in November 2001, MLNG sold and delivered two ex-ship cargoes to Chubu Electric in 2002 and 2004 respectively. Today’s SPA is the first long-term contract signed between the two companies.
The PETRONAS LNG Complex currently has a combined production capacity of approximately 23 million tonnes per annum (mtpa). The Complex houses the three-train, 8.1 mtpa MLNG plant, the three-train, 7.8 mtpa MLNG Dua plant and the two-train, 6.8 mtpa MLNG Tiga plant. The MLNG Dua plant is currently undergoing a de-bottlenecking exercise that would increase its capacity by an additional 1.3 mtpa by the end of 2009.
At the SPA signing ceremony held in Kuala Lumpur today, MLNG was represented by its Chairman Tan Sri Dato Sri Mohd Hassan Marican and Chubu Electric by its President and Director Mr. Fumio Kawaguchi.
Media Relations Department