Petronas Pens 12-Year LNG Supply Deal with Shenergy, Orders Two Ships

Petronas LNG Ltd., a subsidiary of Malaysia’s oil and gas major Petronas, has signed a Heads of Agreement with China’s Shenergy Group Company Limited to supply approximately 1.5 MTPA of liquefied natural gas to its Wuhaogou receiving terminal in China.

The LNG supply deal covers a 12-year term starting from 2022, and involves a shipping collaboration to construct and charter new mid-sized LNG vessels for the cargo delivery.

The company booked the construction of two 79,900 cbm LNG carriers at Chinese shipbuilder Hudong-Zhonghua, a subsidiary of China State Shipbuilding Corporation, the shipbuilder announced last week. The order for the dual-fuel LNG carriers is estimated to be worth around USD 240 million.

The ships are designed to operate in shallow river and coastal waters and are 239 meters long.

“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,” the company said in a statement.

The Malaysian oil and gas major has over 35 years of experience as an integrated global LNG producer and has supplied gas to more than 25 countries around the world.

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.

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