Toho Gas Co. Ltd has announced that it has entered a sale and purchase agreement (SPA) with Petronas LNG Ltd for the first purchase of LNG by portfolio supply. In the statement, Toho Gas says that it “negotiated on a sale and purchase agreement of LNG with the objective of flexibility of quantity and diversification of the price-index.”
The agreement follows discussions with Petronas regarding the details of the contract since entering into Heads of Agreement on 31 March 2015.
The contract will last 10 years, commencing April 2017, and will see Toho Gas purchase between seven and nine cargoes per year. The LNG price will be linked to both Henry Hub (HH) and crude oil, and will be delivered on an ex-ship basis.
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/regasification/21032016/toho-gas-enters-spa-with-petronas-2158/