Tokyo Gas's other contracts with Petronas will expire by.
In a DES contract, the provision to require "sellers' consent" to diversion is not problematic but the sellers' unreasonable refusals for a buyer's request for diversion are likely to be in violation of the law, the ruling said.
Petronas, through its subsidiary Malaysia LNG Sdn.
The company, which has been procuring LNG from Malaysia's Satu Project since 1983, would buy Malaysian LNG for up to 13 more years.
Beginning April 2018, Petronas will supply 500,000 tonnes annually for the first six years and may raise the volume to 0.9 million tonnes annually for the remaining seven years.
Petronas through MLNG continues to enhance the 35-year business relationship with Tokyo Gas with the new agreement following the delivery of its 10 000 cargo to the Japanese gas company in October last year.
There is then an option for the tonnage to then increase to 900,000 for the remainder of the contract.