Petronas signs 15-year deal to supply LNG to South Korean firm

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KUALA LUMPUR (Aug 29): Petroliam Nasional Bhd’s (Petronas) subsidiary Petronas LNG Ltd has inked a 15-year deal with South Korea-based S-OIL Corporation to supply liquefied natural gas (LNG).

The national oil company said Petronas LNG is committed to deliver up to 700,000 tonnes of LNG per annum to S-OIL, starting from 2018.

S-OIL will use the LNG as fuel for its new plant operations and as feedstock for hydrogen production, Petronas said in a statement today.

The deal, said Petronas, is testament to the company’s focus in building long-term relationships with committed partners.

“Petronas looks forward to create further value with S-OIL to ensure that we can deliver the most value-comprehensive solution,” said Petronas LNG chairman Ahmad Adly Alias, who also doubles as Petronas’ vice president of LNG marketing and trading.

“To date, we have successfully delivered cargoes without fail and will continue to ensure security of supply and reliability to all of our buyers,” Ahmad Adly added.

The long-term deal with S-OIL was signed in Kuala Lumpur last Friday, said Petronas. Signing on behalf of Petronas LNG was Ahmad Adly Alias, while S-OIL was represented by its president for corporate strategy and services Dr Ryu Yul.

Present during the signing ceremony were Petronas executive vice president and upstream chief executive officer (CEO) Datuk Mohd Anuar Taib and S-OIL CEO Othman Al Ghamdi.

Petronas, which has over 30 years of experience in LNG, operates from its main supply base in Bintulu, Sarawak.

In addition, Petronas has also diversified its LNG supply portfolio in recent years with the inclusion of Australia Gladstone LNG and the world’s first floating LNG facility located in offshore Sarawak.

Established in 1976 and based in Seoul, S-OIL is an oil refining company that produces petroleum, petrochemical and lubricant products.