Malaysia LNG Sdn Bhd (MLNG), a subsidiary of PETRONAS, has signed a Sale and Purchase Agreement (SPA) with Shikoku Electric Power Co., Inc. (Shikoku Electric) to supply up to 420,000 metric tonnes per year of liquefied natural gas (LNG) for 15 years beginning 1st April 2010, with an option to extend for additional five years. The SPA sealed the Confirmation of Intent signed by both parties in January 2006.The SPA was signed in Kuala Lumpur today by Tan Sri Dato Sri Mohd Hassan Marican, Chairman of MLNG and Mr. Momoki Tokiwa, President of Shikoku Electric.
The LNG will be transported from the PETRONAS LNG Complex in Bintulu, Sarawak to Shikoku Electric’s new receiving terminal in Sakaide, Japan on ex-ship basis by LNG tankers owned and operated by MISC Berhad, 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 Shikoku Electric 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 four other LNG companies.
The new SPA marks another milestone in the long-term relationship 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 portfolio of Japanese customers to 15.
The PETRONAS LNG Complex, the world’s largest LNG production facility at a single location, 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. PETRONAS’ LNG business is supported by MISC, the world’s largest owner and operator of LNG tankers, providing PETRONAS with the capacity and flexibility to ensure a secure and reliable supply to its customers.
Media Relations Department