Japan gas association welcomes government’s first emergency LNG deal with Petronas
FILE PHOTO: The logo of Malaysian energy group PETRONAS is displayed at their booth during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo
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TOKYO, Sept 16 : Japan Gas Association welcomed the government’s first deal to procure liquefied natural gas from Malaysia’s Petronas in an emergencies and hoped similar agreements would follow, Chairman Takeshi Uchida said on Wednesday.
• The master sales and purchase agreement, signed last week, will enable Petronas to deliver LNG to the state-owned Japan Organization for Metals and Energy Security, which would supply private buyers such as utilities if they were unable to secure supplies elsewhere.
• “We view this as an initiative that builds on the government’s Strategic Buffer LNG scheme, and if it means we can procure LNG in an emergency, this would be most welcome,” said Uchida, also the chairman of Japan’s biggest city gas provider Tokyo Gas.
• Uchida said he hopes Japan’s efforts to build ties would expand beyond Malaysia to other LNG-producing countries, but noted that their production capacity is limited and it is unclear how much LNG they could supply at short notice. He added that it was difficult to assess the latest contract because details such as prices and other terms have not been disclosed.
• Japan’s SBL scheme, created by the industry ministry and launched in 2023, requires a company designated by the ministry to secure LNG cargoes in advance as an emergency reserve for utilities facing supply disruptions or other emergencies.
Source: Reuters
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