MLNG, a subsidiary of Petronas has signed a confirmation of intent (COI) with the Japanese company to supply the LNG in Kuala Lumpur last Friday, with an option to extend supply for a maximum of five years. According to a statement issued by Petronas, the LNG will be supplied to Osaka Gas from Petronas' LNG Complex in Bintulu. The LNG will be transported from Bintulu to Osaka Gas' receiving terminals in Senboku, Osaka Prefecture and Himeji, Hyogo Prefecture on ex-ship basis by LNG tankers, owned and operated by MISC Bhd, the shipping arm of Petronas. MLNG's long-term relationship with Osaka Gas, the second-largest gas company in Japan, started in 1994 when it signed a 20-year supply contract with a consortium of Japanese companies, of which Osaka Gas is a member. In 2002, the consortium signed a contract with MLNG Tiga, another Petronas subsidiary for the supply of LNG for a period of 20 years starting 2004. Petronas said the signing of the COI marks an important milestone for Osaka Gas, as this will be its first supply deal signed independently with Malaysia LNG companies. Osaka Gas currently receives about 720,000 tonnes per annum supply of LNG from the Malaysia LNG companies. under the existing long-term contracts. With the signing of the COI, Osaka Gas will receive about 1.7 million tonnes per annum of LNG supply. The Petronas LNG Complex currently has a combined production capacity of about 23 mtpa. The complex houses the three-train, 8.1 mtpa MLNG plant, the three-train, 7.8 mtpa MLNG Dua plant and two-train, 6.8 mtpa MLNG Tiga plant. At the signing of the COI, MLNG was represented by its managing director and chief executive officer Ahmad Nizam Salleh, while Osaka Gas by its executive vice president Seishiro Yoshioka. PIN/BUSINESS TIMES