Malaysia LNG Sdn Bhd (MLNG), a subsidiary of PETRONAS, has signed a Confirmation of Intent (COI) with Shikoku Electric Power Co., Inc (Shikoku Electric) to supply up to 420,000 metric tonnes per annum (mtpa) of liquefied natural gas (LNG) for 15 years beginning 2010, with an option to extend for another five years. Shikoku Electric is a new addition to MLNG’s list of Japanese customers.
The LNG will be supplied to Shikoku Electric from the PETRONAS LNG Complex in Bintulu, Sarawak. The LNG will be transported from Bintulu to Shikoku Electric’s new receiving terminal in Sakaide, Japan on ex-ship basis by LNG tankers owned and operated by MISC Bhd., a subsidiary of PETRONAS. The receiving terminal, currently under construction and due for completion in 2010, is owned by Sakaide LNG Co., Inc., a joint venture between Shikoku Electric, Cosmo Oil Co., Ltd. and Shikoku Gas Co., Ltd.
Shikoku Electric is the eighth largest power company in Japan, supplying electricity to more than four million people in Shikoku Island. For the first time beginning 2010 this sole supplier of electricity to the island will use LNG as fuel in its power plants. MLNG was selected as the only supplier of LNG for Shikoku Electric from a list of five other LNG companies.
The signing of the COI marks another milestone in the long-term relationships between MLNG and its Japanese customers. It is also a testimony to MLNG and Malaysia’s reputation as a stable and reliable LNG supplier. The deal increases MLNG’s customer base among the Japanese power and gas utility companies to 13.
The PETRONAS LNG Complex in Bintulu currently has a combined production capacity of approximately 23 mtpa. The Complex houses the three-train, 8.1 mtpa MLNG plant, as well as the three-train, 7.8 mtpa MLNG Dua plant and the two-train, 6.8 mtpa MLNG Tiga plant.
Managing Director/CEO of MLNG, Encik Ahmad Nizam Salleh and Managing Director of Shikoku Electric, Mr. Yukio Shinomiya signed the COI in Kuala Lumpur on Friday, 20 January.
Media Relations Department