Malaysia LNG Extends Supply Deal with Saibu Gas

Malaysia LNG Sdn Bhd (MLNG), a subsidiary of Petronas, has signed a new sale and purchase agreement (SPA) with Saibu Gas Co., Ltd. (Saibu Gas) to supply up to 390,000 tonnes per annum (TPA) of liquefied natural gas (LNG) for 15 years beginning October 2013. The SPA is an extension of the existing supply contract between the two parties.

The SPA was signed in Kuala Lumpur today by Tan Sri Dato Sri Mohd Hassan Marican, Chairman of MLNG, and Mr. Hiroki Ogawa, President of Saibu Gas.

The LNG will be supplied to Saibu Gas from the MLNG plant within the Petronas LNG Complex, in Bintulu, Sarawak. The LNG will be transported from Bintulu to Saibu Gas' receiving terminals in Nagasaki and Hakata on ex-ship basis by LNG vessels Aman Hakata and Aman Bintulu. The medium-sized ships, each with a capacity of 18,000m3, are owned and operated by Asia LNG Transport Sdn Bhd, a joint venture between Petronas' subsidiary MISC Bhd and NYK Line.

The new SPA is a testimony to the spirit of long term mutually beneficial relationship between MLNG and Saibu Gas that was forged when the two parties first sealed a 20-year supply contract in 1990.

Saibu Gas currently receives about 357,000 TPA of LNG from MLNG under the existing long-term contract. Saibu Gas supplies gas to more than 1.1 million users in the Fukuoka region in Japan.

The Petronas LNG Complex, the world's largest LNG production facility at a single location, has a combined capacity of 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 capability and flexibility to ensure a secure and reliable supply to its customers.