Regional LNG: Japan?s Hiroshima Gas to buy LNG from Malaysia

Malaysia LNG Sdn Bhd (MLNG), a subsidiary of Petronas, on Monday signed a Sale and Purchase Agreement (SPA) with Hiroshima Gas Co., Ltd. to supply up to 82,000 metric tons of liquefied natural gas (LNG) to the Japanese company for eight years beginning later this year.

Petronas said in a statement that the LNG would be supplied from the Petronas LNG complex in Bintulu, Sarawak and will be delivered to Hiroshima Gas? receiving terminal at Hatsukaichi in Japan on ex-ship basis.

The Bintulu complex has capacity to turn out 23 million tons per year (mtpa) of LNG. The complex houses the three-train, 8.1 mtpa MLNG plant, as well as the three-train, 7.8 mtpa MLNG Dua plant and the two-train, 6.8 mtpa MLNG Tiga plant.

Hiroshima Gas currently imports LNG from Indonesia with an annual volume of 210,000 metric tons. The contract will expire in 2015.

In May, Hiroshima Gas also signed a contract to buy as much as 210,000 mtpa of LNG from Russia?s Sakhalin-2 project over 20 years starting 2008.(Robert)