Petronas inks LNG supply deal with China’s Shenergy Group

20 Jan 2020 / 14:04 H.

KUALA LUMPUR: Petronas through its subsidiary, Petronas LNG Ltd (PLL), has signed a heads of agreement with Shenergy Group Company Ltd to supply approximately 1.5 million tonnes per annum (MTPA) of liquefied natural gas (LNG) to its Wuhaogou receiving terminal in China.

In a statement today, Petronas said the agreement is for a 12-year term starting from 2022, adding that it also involves a shipping collaboration to construct and charter new mid-sized LNG vessels for cargo delivery.

“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,” it said.

Petronas Gas and New Energy executive vice-president and chief executive officer 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 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,” he added. -- Bernama

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