The Tokyo Electric Power Co, Inc.
Tokyo Gas Co., Ltd.
Osaka Gas Co., Ltd.
The Tokyo Electric Power Co, Inc.("TEPCO"), Tokyo Gas Co.,Ltd.("Tokyo Gas"),
and Osaka Gas Co.,Ltd.("Osaka Gas"),(hereafter "the Buyers")
today concluded a Heads of Agreement ("HOA") with Brunei LNG Sendirian
Berhad ("Seller") for the purchase of liquefied natural gas ("LNG").
LNG procurement from the Brunei LNG Project through a consortium formed by
the Buyers has been ongoing since 1972. However, as the existing LNG sales
and purchase contract valid from 1993 is set to expire on March 2013, in
2010 the Buyers and Seller entered into a discussion to extend the contract
and have reached a basic agreement that will allow the Buyers to purchase
approximately 3.40 million tons of LNG per annum over a period of 10 years
starting from April 2013. In accordance with this agreement, the Buyers and
Seller will move forward with discussions to conclude a new LNG sales and
purchase contract.
The Buyers and Seller have built a strong relationship spanning over 40
years and this agreement will serve to maintain stable trade as well as
contribute to the Buyers' stable procurement of LNG used for power
generation and city gas production.
From here on, the Buyers will work towards the stable and efficient
procurement of fuels for power generation and feedstock for city gas in
order to maintain a secure supply of energy.
Appendix: Outline of HOA and Seller's Company Profile (PDF 40.3KB)
Reference: Existing Sales and Purchase Contract Outline and Seller's
Company Profile (PDF 7.10KB)