Petronas inks 12-year LNG supply deal with China’s Shenergy

Malaysian energy giant Petronas has signed a heads of agreement with Shenergy Group Company to supply approximately 1.5 mtpa of liquefied natural gas (LNG) to its Wuhaogou receiving terminal in China. 

The LNG supply agreement signed through Petronas’ unit, Petronas LNG, is for a 12-year term starting from 2022, the company said in a statement.

The deal also involves a shipping collaboration to construct and charter new mid-sized LNG vessels for the cargo delivery.

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, the statement reads.