Malaysia will supply RM76 billion (US$20 billion) worth of gas to two Japanese power companies, national oil company Petronas said today.

Petronas' subsidiaries Malaysia LNG Sdn Bhd (MLNG) and MLNG Tiga Sdn Bhd signed two separate agreements to supply liquefield natural gas (LNG) to the Tokyo Electric Power Company Inc and Tokyo Gas Co Ltd.

The agreement between MLNG and Tokyo Electric and Tokyo Gas, was for the supply of up to 7.4 million tonnes per year of LNG to the two companies for 15 years beginning April 2003.

Good reputation

At current prices, the contract is worth about RM76 billion for the 15-year duration, Petronas said in a statement.

The other agreement was signed between MLNG Tiga and Tokyo Electric to supply up to 540,000 tonnes of LNG. The o­ne year contract begins in April.

The agreement "is a testimony to MLNG and Malaysia's reputation as a stable, reliable and competitive LNG supplier," Petronas said.

The gas for both contracts would be delivered from the Petronas Bintulu LNG complex in Sarawak.

Tokyo Electric is the biggest electric provider in Japan while Tokyo Gas is the largest city gas company in Japan. Malaysia is currently the world's third largest LNG supplier. AFP