Petronas, PTTGLI ink LNG plant agreement
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has signed an agreement with PTTGL Investment Ltd (PTTGLI) for the latter’s participation of a 10 per cent equity interest in Petronas LNG 9 Sdn Bhd (PL9SB).
PL9SB, a Petronas unit, owns the ninth LNG liquefaction train (Train 9) in the Petronas LNG Complex in Bintulu, Sarawak.
With a production capacity of 3.6 million tonnes per annum (mpta), Train 9 started its commercial operations in the first quarter of this year, boosting the total output capacity of the Petronas LNG Complex to 30 metric tonnes per annum (mtpa).
PTTGLI is a unit of PTT Global LNG Co Ltd (PTTGL), itself a 50:50 joint venture between PTT Pcl (PTT) and PTT Exploration and Production Pcl (PTTEP).
Following PTTGLI’s participation, Petronas now owns 80 per cent share in PL9SB. The remaining 10 per cent is owned by JXTG Nippon Oil & Energy Corp through its subsidiary, Nippon Oil Finance (Netherlands) B.V.
“This strategic partnership demonstrates Petronas’s ongoing commitment to grow our LNG business and, more importantly, pave the way for both parties to collaborate further in strengthening and maximising the integrated oil and gas value chain,” said Petronas executive vicepresident and chief executive officer (upstream) Datuk Mohd Anuar Taib.
“This collaboration with PTT Pcl is also a catalyst for Petronas’s growth in the Thai gas market, as part of our long-term gas business strategy,” he added.
The partnership is PTT’s second collaboration with Petronas in the LNG business, following a LNG sale and purchase (SPA) deal signed with Petronas LNG Ltd in May.
Under the LNG SPA, Petronas LNG will deliver up to 1.2 mtpa of LNG to PTT for a period of 15 years till 2031.
The first cargo was successfully delivered on July 20 to the Map Ta Phut Terminal at Rayong, Thailand.
PL9SB is Petronas’s fourth LNG company after Malaysia LNG Sdn Bhd, Malaysia LNG Dua Sdn Bhd and Malaysia LNG Tiga Sdn Bhd. They collectively own all the LNG modules in the Petronas LNG Complex.
With the addition of PL9SB, the Petronas LNG Complex is now one of the world’s largest LNG production facilities in a single location. Bernama