Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on May 27, 2016.

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas), which has sealed a liquefied natural gas (LNG) contract extension from Jovo Group Co Ltd, intends to further grow its LNG footprint in China.

In a statement yesterday, the national oil firm said the contract extension had strengthened its LNG market presence in China.

“Backed by a solid and stable supply portfolio, Petronas intends to grow its footprint in China by increasing its LNG supply to existing buyers and expanding its customer base,” said Petronas vice-president of LNG marketing and trading (upstream) Ahmad Adly Alias after the signing ceremony.

Earlier, he inked the contract with Jovo Group president and chief executive officer Zhang Jiangguo.

The contract will ensure a stable and significant increase of LNG supply to Jovo up to at least 2023, Petronas said, as it seeks to expand its downstream market to meet end-users’ demand in China.

“Petronas is dedicated to ensuring that our buyers’ requirements for stable and competitively priced LNG supply are met,” said Ahmad Adly, adding that the contract extension proves that the group appreciates the Chinese culture of working together and understands what it takes for Chinese LNG buyers to grow and succeed in this market.

“We were here from Jovo’s infancy in the LNG market, and we will be here to support them to grow further,” added Ahmad Adly.

Jovo owns and operates the Dongguan LNG terminal based in Guangdong, South China, where stability of supply and competitive pricing are fundamental to its growth strategies.

Petronas also updated that it had successfully delivered conventional deliveries to Yangshan, partial cargo deliveries to Dongguan, and small vessel deliveries to Shanghai Wuhaogao and Hainan Macun. Deliveries to China will typically take only five days.

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