LNG Canada in­vestor Petronas signs deal with Vi­tol

The Sun (Malaysia) - - SUNBIZ -

LON­DON: LNG Canada, the US$30 bil­lion (RM125.7 bil­lion) liq­ue­fied nat­u­ral gas (LNG) ex­port project, has bagged an­other client af­ter project share­holder Petro­liam Na­sional Bhd (Petronas) signed an ini­tial sales deal with trad­ing house Vi­tol.

Royal Dutch Shell de­cided in Oc­to­ber to con­struct the ex­port ter­mi­nal. It was the first ma­jor in­vest­ment de­ci­sion in a new North Amer­i­can LNG ex­port project for two years and was ex­pected to launch a new wave of such projects in the re­gion.

Petronas, the Malaysian state-owned oil and gas com­pany that bought a 25% stake in the project in May, will sup­ply Vi­tol with 0.8 mil­lion tonnes per year (mtpa) of LNG start­ing from 2024 for 15 years, Vi­tol said in a state­ment.

“The pri­mary sup­ply to Vi­tol will come from LNG Canada as well as from (Petronas’) other global LNG sup­ply port­fo­lio,” Vi­tol said.

Vi­tol joins Asian util­i­ties Tokyo Gas, Toho Gas and Korea Gas Corp (Ko­gas) as buy­ers, com­mit­ting to off­take around 2.4 mtpa col­lec­tively.

Un­der pre­vi­ously an­nounced agree­ments, Toho Gas will buy 0.3 mtpa, Tokyo Gas 0.6 mtpa and Ko­gas 0.7 mtpa from LNG Canada. – Reuters

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