UPDATE 1-Malaysia's Petronas to sell LNG to Japan's Shikoku

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KUALA LUMPUR, May 11 (Reuters) - Malaysian state oil and gas firm Petronas [PETR.UL] will sell up to 420,000 tonnes of liquefied natural gas (LNG) a year to Japan's Shikoku Electric Power Co. Inc (9507.T), Petronas said on Friday.

The contract will be for 15 years from April 1, 2010, with an option to extend for another five years, the Malaysian company said, without giving details on prices.

The LNG shipments will be bound for Shikoku Electric's new receiving terminal in Sakaide, Japan, Petronas said, adding that the terminal was under construction and due to be built by 2010.

"For the first time beginning 2010, Shikoku Electric will use LNG as fuel in its power plants," it said in a statement.

Four other LNG companies had vied for the contract, it added.