Qatargas And Petronas Sign Heads Of Agreement For Long-Term LNG Supply To Malaysia

abarrelfullabarrelfull wrote on 25 Jul 2011 11:24
Tags: lng malaysia petronas qatar qatargas

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Qatargas achieved another milestone today, as it announces the signing of a Heads of Agreement (HOA) to supply Liquefied Natural Gas (LNG) to PETRONAS LNG Ltd; (formerly known as ASEAN LNG Trading Company), a wholly-owned subsidiary of Petroliam Nasional Berhad (PETRONAS), the national oil and gas company of Malaysia, at a ceremony held in Doha, Qatar.

Under the terms of the HOA, Qatargas will deliver one and half million tonnes per annum (MTA) of LNG to Malaysia for a period of at least twenty years beginning in 2013. This is equivalent to about five per cent of Malaysia’s current annual average domestic natural gas demand, which is growing at a rate of around six per cent per annum.

The agreement was signed by Khalid Bin Khalifa Al Thani, Chief Executive Officer, Qatargas, and Adnan Zainol Abidin, Director of Petronas LNG Ltd. and Vice President of Global LNG, PETRONAS.

In recognition of this achievement , His Excellency Dr. Mohammed Bin Saleh Al Sada, Minister of Energy and Industry for the State of Qatar and Chairman of Qatargas states: “I am delighted that Qatargas and PETRONAS have entered into this Agreement for the supply of LNG to Malaysia. Qatar and Malaysia have long enjoyed an excellent relationship and this transaction is further evidence of the strong ties between the two nations.”

Khalid Bin Khalifa Al Thani, Chief Executive Officer, Qatargas, said: “It is the first time Qatargas has signed a HOA for supplying LNG to the South East Asian market. We are very pleased with this achievement as it represents the first long-term agreement for supplying LNG to one of the world’s fastest growing LNG markets. We look forward to a strong and long-term relationship with PETRONAS, one of the world’s premier energy companies. This milestone further demonstrates our commitment to supplying all corners of the globe with reliable LNG supplies.”

Datuk Anuar Ahmad, Executive Vice President, Gas & Power, PETRONAS, said: “PETRONAS views Qatargas as a strategic long term supplier of LNG for Malaysia, ensuring its security of supply. The signing of this HOA marks another important milestone in the growing relationship between PETRONAS and Qatar Petroleum.”

Qatargas will supply the agreed volumes to PETRONAS from the Qatargas 2 joint venture, onboard its Q-Flex fleet of vessels to Malaysia’s’ first regasification terminal. The terminal is currently being constructed on the western coast of Peninsular Malaysia and is expected to become operational by mid 2012, coinciding with the 25th World Gas Conference to be held in Kuala Lumpur in June the same year.

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