Malaysia LNG to Supply LNG to Osaka Gas

Malaysia LNG Sdn Bhd (MLNG), a subsidiary of PETRONAS, has signed a Confirmation of Intent (COI) with Osaka Gas Co. Ltd to supply up to 920,000 metric tons per annum of liquefied natural gas (LNG) for 15 years beginning April 2009, with an option to extend for a maximum of five years.

The LNG will be supplied to Osaka Gas from PETRONAS LNG Complex in Bintulu, Sarawak. The LNG will be transported from Bintulu to Osaka Gas' receiving terminals in Senboku, Osaka Prefecture and Himeji, Hyogo Prefecture on ex-ship basis by LNG tankers owned and operated by MISC Bhd., a subsidiary of PETRONAS.

The long term relationship with Osaka Gas, the second largest gas company in Japan, started in 1994 when MLNG signed a 20-year supply contract with a consortium of Japanese companies of which Osaka Gas is a member. In 2002, the consortium signed a contract with MLNG Tiga, another PETRONAS subsidiary, for the supply of LNG for a period of 20 years from 2004.

The signing of the COI marks an important milestone for Osaka Gas, as this will be its first supply deal signed independently with Malaysia LNG companies. Osaka Gas currently receives approximately 720,000 metric tons per annum supply of LNG from the Malaysia LNG companies under the existing long-term contracts. With the signing of the COI, Osaka Gas will receive about 1.7 million tons per annum (mtpa) of LNG supply.

The PETRONAS LNG Complex currently has a combined production capacity of approximately 23 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.

Managing Director/CEO of MLNG, Encik Ahmad Nizam Salleh and Executive Vice President of Osaka Gas, Mr. Seishiro Yoshioka signed the COI in Kuala Lumpur on Friday, April 7th.