Long-Term LNG Offtake Obligations Under Take-or-Pay Arrangements
First written in FY2016. 3 of 6 entries say "Restated". Latest entry: FY2023.
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- FY2023ReframedAnnual report
「We seek to balance procurement stability with flexibility in responding to fluctuations in demand by combining long-term and spot contracts for the LNG required based on projected future sales volumes. However, if an unexpected decline in demand or other event occurs, adjusting spot procurement volumes alone may not be sufficient, and we may have to pay shortfall compensation for LNG quantities under long-term contracts or resell LNG at low prices.」
After the Malaysia LNG Tiga project contract ended, the scope of disclosure was shifted from the long-term take-or-pay obligation tied to an individual contract to the risks of shortfall compensation and low-priced resale under long-term contracts generally. - FY2023-Q1MitigatedAnnual report
「On 9 April 2002, we entered into a long-term sale and purchase agreement with Malaysia LNG Tiga Sdn. Bhd. for the purchase of LNG from the Malaysia LNG Tiga project in Sarawak, Malaysia. The contract term expired and the agreement has ended.」
The long-term sale and purchase agreement for the Malaysia LNG Tiga project ended upon expiration, reducing exposure to the former long-term take-or-pay obligation. - FY2022RestatedAnnual report
「Quantity: maximum 480,000 tonnes per year. If the prescribed quantity is not taken in any given fiscal year, we are required to pay an amount equivalent to the price under the take-or-pay arrangement, and have the right to request delivery in a subsequent fiscal year of the quantity corresponding to the shortfall.」
Continues to disclose the take-or-pay obligation for a maximum of 480,000 tonnes per year of Malaysian LNG. Including the period for taking the final cargo, the contract runs through the end of December 2022 at the latest. - FY2020RestatedAnnual report
「Quantity: maximum 480,000 tonnes per year. If the prescribed quantity is not taken in any given fiscal year, we are required to pay an amount equivalent to the price under the take-or-pay arrangement, and have the right to request delivery in a subsequent fiscal year of the quantity corresponding to the shortfall.」
Continues to disclose the contract for Malaysian LNG, with a maximum quantity of 480,000 tonnes per year for 20 years, and the take-or-pay obligation. - FY2017RestatedAnnual report
「With respect to LNG from Malaysia, imports of which we began in March 2003, we are subject to a long-term take-or-pay obligation. Even if circumstances prevent us from taking the annual minimum quantity stipulated in the contract, we are required to pay for the shortfall.」
Continues to disclose the payment obligation for the minimum quantity of Malaysian LNG to be taken. - FY2016First statedAnnual report
「With respect to LNG from Malaysia, imports of which we began in March 2003, we are subject to a long-term take-or-pay obligation. Even if circumstances prevent us from taking the prescribed annual minimum quantity, we are required to pay for the shortfall.」
Discloses the risk that the obligation to pay for the minimum quantity remains even if sales volumes decline.