Partnership to provide LNG ship-to-ship transfer services

KUALA LUMPUR: Petronas LNG Ltd (PLL), a subsidiary of Petronas LNG Sdn Bhd (PLSB), signed a two-year service agreement with Argo Engineering Sdn Bhd (Argo) and Eastport Marine Sdn Bhd (Eastport) to provide liquefied natural gas (LNG) ship-to-ship transfer services in Labuan.

The ship-to-ship transfer is the transfer of LNG between two vessels positioned alongside each other. Ship-to-ship transfer allows flexibility of cargo delivery especially for small-scale LNG requirements.

Signing on behalf of PLL was its chairman, Ahmad Adly Alias while Argo was represented by Ir Kamarulbahrin Saidin, managing director of Argo and Eastport was represented by Datuk Captain Walter Nair, managing director of Eastport.

Also present to witness the signing were PLL Head of Fleet Management, Mohd Hanafi Jamal and Datuk Mohd Basri Abd Gafar, Chairman of Argo, together with Noraiyathi Hj Abu Bakar, Director of Argo, and Benjamin Nair, Executive Director of Eastport.

“This ship-to-ship transfer service agreement is Petronas’ first collaboration in providing flexible delivery solutions that goes beyond the conventional selling and delivering of LNG,” said Adly.

“LNG ship-to-ship transfer services is an emerging trend to cater to the needs of small scale LNG requirements,” he added.

Combining Argo and Eastport’s shipping expertise with Petronas’ LNG strong portfolio, the partnership will enable PLL to respond to new market requirements in the changing LNG industry landscape which includes LNG shipping solutions.

Argo has vast experience in LNG shipping operations supported by a network of experienced technical personnel in the LNG shipping industry, while Eastport has expertise in handling bunkering and shipto-ship operations, in addition to possessing the sole license to provide LNG bunkering and ship-to-ship services at Brunei Bay, Labuan.

PLL also signed a Memorandum of Agreement (MOA) with Bintulu Port Sdn Bhd (BPSB), a subsidiary of Bintulu Port Holdings Berhad (BPHB) for the provision of marine services to support PLL’s Gassing Up and Cooling Down (GUCD) services at the Bintulu Port for a period of three years.

The GUCD is a specialised service to bring the storage tanks on LNG carriers, after dry-docking, to natural environment and later cool it down to cryogenic temperature (minus 160 degrees Celsius) before loading its next cargo.

The services at the Bintulu Port will commence in 2018, positioning Bintulu as one of the premier LNG hubs and making it one of the few terminals in the world to offer this facility. The LNG for gassing up services will be supplied from the Petronas LNG Complex in Bintulu.

Signing the MOA on behalf of PLL was its Adly while Bintulu Port was represented by Dato Mohammad Medan Abdullah, BPSB Group Chief Executive Officer.

Also present to witness the signing were PLL Head of Fleet Management, Mohd Hanafi Jamal and Omar Salleh, Chief Operating Officer of BPSB.

“The GUCD services is a niche and specialised service offered by Petronas. This is the first GUCD services in Malaysia at the Bintulu Port,” said Adly.

“This collaboration is expected to enhance Petronas’ portfolio of services in the integrated (LNG) value chain,” he added.

In supporting the GUCD services, Bintulu Port will provide port and maritime services with attractive rates which will provide cost savings to the LNG vessel operators.

Petronas, with over 30 years of experience in integrated global LNG business, has a sterling reputation as a reliable LNG solution provider and supplier.