Petronas announced today that a gas subsidiary will supply liquefied natural gas to Japanese power company Shikoku Electric for 15 years from 2010.

Malaysia LNG signed a confirmation of intent with Shikoku on Friday in a deal that will see it supply up to 420,000 metric tons annually of liquefied natural gas (LNG), with an option to extend for another five years after 2010.

"MLNG was selected as the only supplier of LNG for Shikoku Electric from a list of five other LNG companies," said Petronas in a statement.

Petronas said the gas will be supplied to Shikoku Electric from its LNG complex in Bintulu and shipped in tankers owned by another of its subsidiaries, MISC.

Shikoku Electric, the eighth-largest power company in Japan, supplies electricity to more than 4 million people on Shikoku island, located off the southern western coast of Japan's main Honshu island.

Shikoku Electric, the sole supplier of electricity to the island, will be using LNG in its power plants from 2010 for the first time, said Petronas.

Petronas said the agreement increased Malaysia LNG's customer base among Japanese power and gas utilities to 13 companies.