Tokyo Gas And Petronas Agree on 13-year LNG deal

[Petar + 76]

Japan’s Tokyo Gas has agreed on a 13-year flexible liquefied natural gas purchase deal with Malaysia’s Petronas in the latest move among large buyers of the super-cooled fuel to shift away from fixed destination contracts. LNG agreements have traditionally stipulated fixed destination for cargoes, where buyers were not allowed to sell on the fuel. According to the heads of agreement signed, Tokyo Gas will buy Malaysian LNG for up to 13 years from April this year, purchasing up to 500,000 tonnes a year for the first six years and up to 900,000 tonnes in the next 7 years.