KUALA LUMPUR: PETRONAS LNG Ltd (PLL), a subsidiary of Petroliam Nasional Bhd (PETRONAS), has signed a heads of agreement (HOA) with Hokuriku Electric Power Company to negotiate and conclude the renewal of a long-term Liquefied Natural Gas (LNG) supply agreement.
The HOA is intended to support the continuity of supply beyond the current contract period. In a statement, PETRONAS said PLL is expected to continue supplying up to 0.54 MTPA of LNG to Hokuriku Electric for a 10-year period from 2028.
At the same time, PETRONAS and Hokuriku Electric also signed a memorandum of understanding (MOU) to explore a strategic collaboration on carbon-neutral initiatives. Accordingly, the parties aims to build a more resilient LNG supply chain, explore next-generation fuels including hydrogen and ammonia, renewable energy, and decarbonisation technologies such as carbon capture and storage (CCS), and carbon capture utilisation and storage (CCUS).
PETRONAS executive vice-president and CEO of Gas and Maritime Business Datuk Adif Zulkifli said PETRONAS remains committed to continue delivering reliable LNG supply while supporting Hokuriku Electric’s energy security, operational resilience and transition journey.
"Beyond LNG, the MOU on carbon-neutral collaboration underscores our shared ambition to explore new opportunities that can create long-term value for both parties,” he added.
Since the commencement of the existing LNG Sale and Purchase Agreement in 2018, PLL has been the sole supplier of LNG to Hokuriku Electric, supporting the operations of its LNG-fired power generation facilities located in Toyama-Shinko Thermal Power Station.
