PETRONAS Concludes 12-Year LNG Deal With Shenergy

PetronasETRONAS, through its subsidiary, PETRONAS LNG Ltd., signed a Heads of Agreement (HOA) with Shenergy Group Company Limited (Shenergy) to supply approximately 1.5 MTPA of liquefied natural gas (LNG) to its 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. 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 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”, he added.

The signing of the HOA between PETRONAS and Shenergy was witnessed by PETRONAS President and Group Chief Executive Officer, Tan Sri Wan Zulkiflee Wan Ariffin.

Established in 1974, Petroliam Nasional Berhad (PETRONAS) is Malaysia’s fully integrated oil and gas multinational ranked among the largest corporations on FORTUNE Global 500®. As an integrated global LNG producer with over 35 years of experience, PETRONAS provides an uninterrupted supply of LNG to more than 25 countries around the world. PETRONAS has safely delivered more than 10,000 cargoes globally, sourced from its portfolio of facilities located in Malaysia, Australia and soon, Canada. It is also the first global energy player to introduce the floating LNG concept in 2016, the PFLNG Satu, and recently named its second floating LNG vessel, the PFLNG Dua, at the end of 2019.