In a statement the Japanese firm said, “TEPCO and MLNG Tiga, in March 2003, signed a one-year sale and purchase agreement (SPA) for the supply of 540,000 metric tonnes of LNG beginning April 2003. The SPA was open to extension subject to mutual agreement between the two parties.”

TEPCO declined to announce the duration of the extension and the contractual volumes agreed by both parties. According to the utility giant, “The agreement is confidential.”

It is a known fact from April 2003 to March 2004 TEPCO imported 5.64 million metric tonnes of LNG from Malaysia. TEPCO also expects to consume 15.4 million metric tonnes of LNG in fiscal 2004-2005. MLNG Tiga, on the other hand, routinely supplies 3.52 million metric tonnes of LNG per annum to Japan.

MLNG Tiga is a JV between Petronas (60%), the Sarawak state government (10%), Royal Dutch/Shell (15%), Nippon Oil (10%) and Diamond Gas Netherlands (5%).