Japanese gas utility Toho Gas said Friday it signed a 10-year contract to buy liquefied natural gas from Malaysia’s Petronas.
This deal follows the heads of agreement signed between the two companies in March last year.
Under the deal, Toho Gas will buy seven to nine cargoes per annum starting from April 2017, the utility said.
LNG will be delivered on an ex-ship basis at prices linked to both crude oil and U.S. Henry Hub.
According to the statement, the chilled fuel will be sourced from Petronas LNG Complex in Bintulu, Malaysia, as well as from the company’s global LNG portfolio.
The contract also allows Toho Gas to change the destination of LNG cargoes after obtaining permission from the Malaysian giant.
LNG World News Staff