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November 19, 2007
Osaka Gas Co., Ltd.
Osaka Gas (OG) entered into agreement with Malaysia LNG Sdn. Bhd. (MLNG) today for a long-term supply of LNG from Malaysia. According to the Sale and Purchase Agreement (SPA) signed by the two companies, a maximum of 920,000 tons of LNG per annum will be supplied to OG for a 15-year period commencing April 2009. The signing of SPA followed the Confirmation of Intent agreed upon between the parties in April 2006.
Upon start of delivery of the additional LNG, OG’s total purchase volume of LNG from Malaysia will reach 1.7 million tons annually when combined with the existing two supply arrangements from the country. Mr. Hirofumi Shibano, President of OG, said, ‘The new supply of LNG from Malaysia is significant in a number of ways. The country will become the second largest supplier in our supply portfolio and it is an important addition to the reliable LNG supply from MLNG.’
MLNG is a major supplier of LNG based on its natural gas liquefaction plant located in Bintulu, Sarawak, with the maximum production capacity of about 23 million tons annually, supplying LNG mainly to Japan, Korea, and Taiwan.Overview of SPA
Malaysia LNG Sdn. Bhd. is a subsidiary of Petronas, the state-owned oil/natural gas company of Malaysia and is a major supplier of LNG mainly to Japan, Korea, and Taiwan. The company’s equity ownership consists of: Petronas (90%), Sarawak State Government (5%), Mitsubishi Corporation (5%)
About Osaka Gas
Osaka Gas is one of the largest gas utilities in Japan with its headquarters in Osaka, having the customer base of about 6.7 million in the Kansai region. The company purchased the total of about 7.3 million tons of LNG from six countries (Australia, Brunei, Indonesia, Malaysia, Oman, and Qatar) on long-term contracts as well as spot cargoes from various sources in FY2007.