SINGAPORE (Mar 1): Petronas is reserving some LNG output from its Bintulu complex to sell into the spot market, a change from historical practice of placing all volumes in long-term contracts, Ahmad Adly Alias, vice president for LNG marketing and trading at the company, said at LNG Supplies for Asian Markets conference in Singapore.
* Historically Petronas would try to maximize output at Bintulu year-round to fulfill long-term contracts
** Now it tries to maximize output only during the winter, when spot prices are higher
* Petronas can be more flexible with LNG produced by Bintulu because it has paid off the debt on the older complex; newer facilities don’t have the same luxury as financial backers still require long-term contracts
* Petronas is still looking at options to monetize Canadian gas assets after deciding not to sanction Pacific Northwest LNG project
** The U.S. features in some considerations to bring gas to market