Malaysia LNG Tiga Sdn Bhd, a subsidiary of PETRONAS, today signed a sale and purchase agreement (SPA) with a consortium comprising Tokyo Gas Co Ltd, Toho Gas Co Ltd and Osaka Gas Co Ltd to supply up to 1.6 million tonnes a year of liquefied natural gas (LNG) to the consortium for 20 years beginning from 2004. At current prices, the contract is valued at about US$6 billion.
The LNG will be supplied to the consortium from MLNG Tiga’s plant — which is Malaysia’s third LNG production facility at the Bintulu LNG Complex, Sarawak — by tankers owned by Malaysia International Shipping Corporation Bhd (MISC), a subsidiary of PETRONAS. The LNG will be transported from Malaysia’s loading terminal at Bintulu to receiving terminals in Tokyo, Nagoya and Osaka in Japan.
MLNG Tiga is a joint venture between PETRONAS (60 per cent), the Sarawak State Government (10 percent), Shell Gas BV (15 percent), Nippon Oil LNG (Netherlands) BV (10 per cent) and Diamond Gas Netherlands BV (5 per cent). The MLNG Tiga plant will comprise two liquefaction trains with an annual production capacity of 3.4 million tonnes each and is scheduled to begin commercial operations in early 2003.
Once operational, the MLNG Tiga plant will make the Bintulu LNG Complex — which already houses plants owned and operated by Malaysia LNG Sdn Bhd and Malaysia LNG Dua Sdn Bhd — the world’s largest LNG production facility in a single location with a combined capacity of about 23 million tonnes per annum.
The SPA concluded today sealed the Confirmation of Intent MLNG Tiga signed in May 2000 with the three-company consortium. Apart from the consortium, MLNG Tiga in April last year signed the SPA to supply up to 900,000 tonnes of LNG per year to Tohoku Electric Co Inc. MLNG Tiga is now finalising the terms of SPAs with other confirmed buyers.
At the SPA signing ceremony held in Kuala Lumpur today, MLNG Tiga was represented by its Chairman Tan Sri Dato’ Mohd Hassan Marican, who is also President and Chief Executive Officer of PETRONAS. The consortium was represented by Mr Hideharu Uehara, President of Tokyo Gas; Mr Toshitaka Hayakawa, President of Toho Gas; and Mr Akio Nomura, President of Osaka Gas.
Legal & Corporate Affairs Division