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LNG : Total Signs Heads of Agreement with Japanese Buyers

Source: www.gulfoilandgas.com 2/17/2009, Location: Asia

Total announces that together with PT PERTAMINA and INPEX Corporation, it has signed a Heads of Agreement with a consortium of Liquefied Natural Gas (LNG) buyers in Japan, setting out the principal terms for an extension of the so-called 1973 and 1981 LNG sales contracts. The consortium includes Kansai Electric, Chubu Electric, Osaka Gas, Toho Gas, Kyushu Electric and Nippon Steel.

Under these extensions, a total of 25 million metric tons of LNG will be delivered to Japan between 2011 and 2020, from the Bontang LNG Plant in East Kalimantan, Indonesia.

The total quantity of natural gas in support of the contract extensions will be supplied from the Offshore Mahakam PSC (Production Sharing Contract), operated by Total in partnership with INPEX Corporation and under the authority of BPMIGAS acting on behalf of the Government of Indonesia.

These new sales contracts give Indonesia and Total the necessary visibility for long-term operations in the Mahakam PSC.

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