Petronas extends LNG supply contract with China’s JOVO
Malaysian energy giant Petronas said it has extended a contract to supply liquefied natural gas to the private Chinese LNG terminal owner, JOVO.
JOVO owns and operates the Dongguan LNG terminal based in Guangdong, South China.
The contract extension signed between the two companies will “ensure a stable and significant increase of LNG supply to JOVO up until at least 2023 as the company seeks to expand its downstream market to meet end-users demand in China,” Petronas said in a statement on Thursday.
Petronas, which operates from its main supply base in Bintulu, Sarawak, said it has already delivered conventional deliveries into Yangshan, partial cargo deliveries into Dongguan and small vessel deliveries into Shanghai Wuhaogao and Hainan Macun. Deliveries into China will typically take only 5 days, according to Petronas.
Malaysia’s Petronas has also diversified its LNG supply portfolio in recent years with the addition of Gladstone LNG in Australia and the upcoming floating LNG producing projects in offshore Sabah and Sarawak.
The contract was signed by Ahmad Adly Alias, VP of LNG Marketing & Trading, Upstream Petronas, and Zhang Jiangguo, President and CEO of JOVO Group.
According to Ahmad Adly, Petronas intends to grow its footprint in China by increasing its LNG supply to existing buyers and expanding its customer base.