KUALA LUMPUR (Jan 20): Petroliam Nasional Bhd (Petronas) has signed an agreement with China state-owned Shenergy Group Co Ltd to supply approximately 1.5 million tonnes per annum of liquefied natural gas (LNG) to its Wuhaogou receiving terminal in China.

The heads of agreement, signed by Petronas LNG Ltd, is for a 12-year term starting from 2022, and will involve a shipping collaboration to construct and charter new mid-sized LNG vessels for the cargo delivery.

In a statement today, Petronas said the new deal for the additional LNG supply allows the group to support Shenergy's increasing demand for LNG, while further strengthening Petronas' foothold in one of the world's fastest growing LNG markets.

Petronas has been a major LNG supplier to Shenergy's subsidiary, Shanghai LNG Co Ltd, since 2006.

Petronas executive vice president cum chief executive officer of gas and new energy Adnan Zainal Abidin said the long-term LNG deal, which involves the delivery of mid-sized cargoes to unique LNG receiving terminals, is a testimony of the group's commitment to customer-centricity and market adaptability.

"This could only be achieved through Petronas' unique business model where we customise our solutions according to our customers' needs and requirements, especially when the market is moving towards mid-sized cargo requirements or smaller parcels of LNG.

"With a focus on providing innovative solutions to meet customer demands, Petronas continues to cement its reputation as a preferred and reliable LNG supplier," he added.