Petronas to supply approximately 1.5 MTPA of LNG to Shenergy’s Wuhaogou receiving terminal
The US' export capacity is expected to grow from about 1.2bcf per day in 2016 to about 8.9bcf per day by the end of 2020 (Credit: Petronas)
Malaysia’s fully integrated oil and gas company Petroliam Nasional (Petronas) subsidiary Petronas LNG (PLL) has signed long-term heads of agreement (HOA) with Shenergy Group for the supply LNG to latter’s Wuhaogou receiving terminal in China.
Under the terms of the 12-year 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.
Petronas said that the new long-term agreement establishes itself as a preferred LNG solutions partner for Shenergy. The Malaysian company has been a major LNG supplier to Shenergy’s subsidiary, Shanghai LNG, since 2006.
The deal comes in response to Shenergy’s increasing demand for LNG
The additional LNG supply from Petronas supports Shenergy’s increasing LNG demand, Petronas noted.
Petronas Gas & New Energy executive vice-president and CEO 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.”
Recently, Petronas subsidiary Petronas Petróleo Brasil (PPBL) has closed the acquisition of a 50% stake in the Tartaruga Verde field and Module III of Espadarte field, both located offshore Brazil, from Petróleo Brasileiro (Petrobras) for $1.29bn.
After commencing production on 22 June 2018, Tartaruga Verde currently produces nearly 103,000 barrels per day (bpd) of oil and 1.2 million m³/day of gas.
The Cidade de Campos dos Goytacazes MV29 floating production storage and offloading (FPSO) vessel is being used for the production from the offshore Brazilian field in the C-M-401 concession block.