Malaysia in Shanghai LNG Supply Pact
Malaysian state-run giant Petroliam Nasional (Petronas) subsidiary Petronas LNG (PLL) has signed a 12-year liquefied natural gas (LNG) supply deal with China’s Shenergy Group.
Under the terms of the 12-year heads of agreement (HOA), Petronas LNG will supply approximately 1.5 million tonnes per annum (MTPA) of LNG to Shenergy’s Wuhaogou receiving terminal.
Additionally, the LNG supply agreement involves a shipping collaboration to construct and charter new mid-sized LNG vessels. The deal is effective from 2022.
Through this new long-term agreement, Petronas continues to establish itself as Shenergy’s preferred LNG solutions partner, having been a major LNG supplier to its subsidiary, Shanghai LNG Co., Ltd since 2006.
The new deal for additional LNG supply allows Petronas 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 Chief Executive Officer of Gas & New Energy, Adnan Zainal Abidin said Petronas values the long-term relationship with Shenergy, which has continued to grow, from strength-to-strength since 2006.
“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 customize 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”, he added.