Malaysia's Petronas signs LNG deal with Chinese Shenergy Group

Malaysian state-owned oil firm Petronas said on Monday that it has signed an agreement with China's Shenergy Group Company Limited (Shenergy) to supply 1.5 million tonnes of liquefied natural gas (LNG) per annum to its Wuhaogou receiving terminal in China.

Petronas said in a statement that the LNG supply agreement was inked through its subsidiary Petronas LNG Ltd, and it is for a 12-year term starting from 2022.

It also involves a shipping collaboration to construct and charter new mid-sized LNG vessels for the cargo delivery, according to the statement.

Petronas said the new long-term agreement allowed the oil firm to continue to establish itself as Shenergy's preferred LNG solutions partner. Petronas has been a major LNG supplier to Shenergy subsidiary, Shanghai LNG Co., Ltd since 2006.

The new deal for additional LNG supply allowed Petronas to support Shenergy's increasing demand for LNG, while further strengthening the group's foothold in one of the world's fastest growing LNG markets, said the statement.

Petronas Executive Vice President and CEO of gas and new energy Adnan Zainal Abidin said the group values its long-term relationship with Shenergy, which has continued to grow, from strength-to-strength since 2006.