KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) intends to expand its presence in China by increasing its liquified natural gas (LNG) supply to existing buyers and expanding its customer base.
The vice president of LNG marketing and trading, upstream Petronas, Ahmad Adly Alias said on Thursday the expansion would be underpinned by Petronas' solid and stable supply portfolio.
He said this in a statement issued by the national oil company after it signed contract with Jovo Group Co. Ltd to extend the LNG supply until 2023.
Petronas sees the extension of the contract as important in strengthening its market presence in China as it seeks to expand its downstream market to meet end-users demand in China
Jovo owns and operates the Dongguan LNG terminal in Guangdong, South China, where stability of supply and competitive pricing are fundamental to its growth strategies.
Petronas, which operates from its main supply base in Bintulu, Sarawak, has delivered conventional deliveries into Yangshan, partial cargo deliveries into Dongguan and small vessel deliveries into Shanghai Wuhaogao and Hainan Macun. Deliveries into China usually takes only five days.
Petronas has also diversified its LNG supply portfolio in recent years with the addition of Gladstone LNG and the upcoming loating LNG projects in offshore Sabah and Sarawak.
The contract was signed by Ahmad Adly and the president and CEO of Jovo Group Zhang Jiangguo,
“Petronas is dedicated to ensuring that our buyers’ requirements for stable and competitively-priced LNG supply are met.
“The extension of this contract proves that Petronas appreciates the Chinese culture of working together and understands what it takes for Chinese LNG buyers to grow and succeed in this market. We were here from Jovo's infancy in the LNG market, and we will be here to support them to grow further,” said Ahmad Adly.
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