Regional LNG: Toho Gas signs agreement with Petronas for LNG purchase
Wednesday, March 23 2016 - 12:58 AM WIB
Japan?s Toho Gas Co., Ltd. has recently entered into sale and purchase agreement with Petronas LNG Ltd. for the first purchase of LNG by portfolio supply.
Toho Gas said in a recent statement it plans to take 7-9 cargoes of LNG per annum under a 10-year supply contract starting April 2017.
?We accurately keep track of any change in the environment for procuring energy, and strive for LNG procurement diversification, including diversification of the price-index, supply sources and types of contracts to ensure a stable energy supply to customers at a competitive price,? the company said in the statement.
?We have positioned this contract as a strong candidate of the new LNG supply sources and have negotiated on a sale and purchase agreement of LNG with the objective of flexibility of quantity and diversification of the price-index,? it added.
Outline of the agreement is as follows.
(1) Parties: Seller Petronas LNG Ltd. (Wholly-owned subsidiary of Petronas)
Buyer Toho Gas Co., Ltd.
(2) Duration ： 10 years from April 2017
(3) Supply Sources ： Petronas LNG Portfolio (Petronas LNG Complex in Bintulu, Malaysia and other LNG which Petronas delivers)
(4) Price: Hybrid pricing combining linkages to both crude oil and Henry hub
(5) Delivery ： Ex-Ship (Seller arranges LNG transportation to Buyer's receiving terminals)
(6) Change of ： Destination Feasible both domestically and overseas by prior agreement between the Parties.
Editing by Reiner Simanjuntak