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April 10. 2006
On April 7, 2006 , Osaka Gas signed the Confirmation of Intent (COI) for a purchase of LNG from Malaysia . On the basis of the agreement between Osaka Gas and Malaysia LNG Sdn. Bhd. (MLNG), Osaka Gas plans to purchase LNG for a 15-year period starting April 2009 for an annual maximum volume of 920,000 tons. Upon the signing of COI, the two companies plan to proceed with their negotiations for an execution of a sale and purchase agreement.
The planned purchase will be an addition to the existing two LNG contracts with Malaysia , bringing the total purchase quantity to about 1.6 million tons on an annual basis. The planned new purchase is expected to contribute significantly to a stable supply of LNG to Osaka Gas for the period after 2009.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.
|1.||Signing parties: Osaka Gas Co., Ltd. (Buyer) and Malaysia LNG Sdn. Bhd. (Seller)|
|2.||Contract duration : 15 years after April 2009 with an option to extend for up to 5 years|
|3.||Contractual annual volume: maximum of 920,000 tons|
|4.||Deliver term: Ex-ship (Seller delivers LNG cargoes to receiving terminals of Osaka Gas)|