KUALA LUMPUR: Petroliam Nasional Bhd's (Petronas) subsidiary will supply liquified natural gas (LNG) to Shenergy Group Company Ltd under a proposed 12-year contract which includes collaboration to build vessels to deliver the cargo.
Petronas said on Monday its subsidiary, Petronas LNG Ltd (PLL) had signed a heads of agreement with Shenergy to supply about 1.5 million tonnes per annum of LNG to the latter's Wuhaogou receiving terminal in China.
“The LNG supply agreement is for a 12-year term starting from 2022, also involves a shipping collaboration to construct and charter new mid-sized LNG vessels for the cargo delivery, ” Petronas said in a statement.
Under this new long-term agreement, Petronas will be Shenergy’s preferred LNG solutions partner. It has been a major LNG supplier to its subsidiary, Shanghai LNG Co., Ltd since 2006.
Petronas viewed the new deal for additional LNG supply enables it to support Shenergy’s increasing demand for LNG, while further strengthening Petronas’ foothold in one of the world’s fastest-growing LNG markets.
Petronas executive vice president and CEO of gas & new energy, Adnan Zainal Abidin said: “The long-term LNG deal, which involves the delivery of mid-sized cargoes to unique LNG receiving terminals, is a testimony of Petronas’ commitment to customer-centricity and market adaptability.
“This could only be achieved through Petronas’ unique business model where we customise our solutions according to our customers’ needs and requirements, especially when the market is moving towards mid-sized cargo requirements or smaller parcels of LNG.
“With a focus on providing innovative solutions to meet customer demands, Petronas continues to cement its reputation as a preferred and reliable LNG supplier.
The signing of the agreement between Petronas and Shenergy was witnessed by Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin.
We're sorry, this article is unavailable at the moment. If you wish to read this article, kindly contact our Customer Service team at 1-300-88-7827. Thank you for your patience - we're bringing you a new and improved experience soon!
What do you think of this article?
100% readers found this article useful