Petronas inks deal to supply LNG for up to 13 years

PETALING JAYA: Petroliam Nasional Bhd (Petronas), through its subsidiary Malaysia LNG Sdn Bhd (MLNG), has signed a heads of agreement (HoA) with Tokyo Gas Co Ltd to supply liquefied natural gas (LNG) for up to 13 years.

The supply to Tokyo Gas will commence from April 2018 and will be for about 500,000 tonnes per annum for the first six years, with the possibility of a volume increase of up to 900,000 tonnes per annum for the remaining extension period.

Petronas vice-president of LNG marketing and trading Ahmad Adly Alias said Petronas remained committed to delivering reliable supply of LNG through its integrated operations that allow for both long-term and shortterm solutions for its customers.

“The HoA is a testament to Petronas’ strength and reliability in providing flexible solutions to accommodate the different needs of buyers,” he added.

Petronas through MLNG continues to enhance the 35-year business relationship with Tokyo Gas with the new agreement following the delivery of its 10,000th cargo to the Japanese gas company in October last year.

“At Petronas, we value these relationships and the trust placed in our company for a secure and reliable supply of LNG,” he added.

MLNG operates the Petronas LNG Complex in Bintulu, Sarawak, one of the world’s largest LNG complexes operating on a single site.

The nine-train facility has a combined annual production capacity of about 30 million tonnes.