PETRONAS LNG (PLL), a subsidiary of PETRONAS, has signed a new liquefied natural gas sale and purchase agreement with Shizuoka Gas. Under the deal, PLL will supply the Japanese utility about 0.84 million tonnes of LNG over a seven-year term that starts in 2032.
The terms
PETRONAS said the new agreement draws on its diversified global LNG portfolio to give Shizuoka Gas more supply flexibility and reliability as the utility's energy needs change amid shifting market conditions. Datuk Adif Zulkifli, PETRONAS' executive vice president and chief executive officer of gas and maritime business, said the company "remains committed to delivering reliable and flexible LNG solutions" through that portfolio. The new contract is a sale and purchase agreement, the standard structure for long-term LNG supply, under which a seller commits a fixed volume to a buyer over a set period rather than trading cargoes on the spot market.
Three decades in Kuala Lumpur
The companies signed the agreement at a ceremony in Kuala Lumpur attended by Zulkifli and Yoshitake Matsumoto, Shizuoka Gas' representative director and president. "This agreement marks more than a commercial milestone," Zulkifli said. The ceremony also marked the 30th anniversary of the first LNG cargo PETRONAS delivered to Shizuoka Gas, a relationship the two companies said has run for three decades. Also at the signing were Shamsairi B M Ibrahim, head of PETRONAS' representative office in Japan, Ezran Mahadzir, PETRONAS' vice president of LNG marketing and trading, Shintaro Hashimoto, an operating officer at Shizuoka Gas, and Rosdi Ab Rahman, chief executive of PETRONAS LNG Ltd.
Widening the relationship
Shizuoka Gas and PETRONAS said they intend to extend the relationship beyond a traditional buyer-seller arrangement, citing plans to explore collaboration on decarbonization along the LNG value chain.
