MLNG Signs Gas Deals With 3 Firms

MALAYSIA Liquefied Natural Gas Sdn Bhd (MLNG), the owner and operator of

the country’s first LNG plant in Bintulu, Sarawak, has secured gas supply

of up to 400.4 trillion British thermal units until 2020.

The company yesterday concluded a gas sales agreement (GSA) with

Petroliam Nasional Bhd (Petronas), Petronas Carigali Sdn Bhd and Sarawak

Shell Bhd for the supply of the gas to the plant.

Petronas said in a statement yesterday that the GSA effectively extends

a similar earlier arrangement between the same parties that expired in

March 2003.

Prior to the conclusion of the new GSA, MLNG continued to receive gas

under an interim arrangement.

Under the GSA, the gas will be supplied from five dedicated fields

offshore Sarawak developed under a production sharing contract in which

Petronas, Petronas Carigali and Sarawak Shell are parties to.

MLNG, a subsidiary of Petronas, owns and operates the first LNG plant

that produces 8.1 million tonnes of LNG annually (mtpa), mainly for

long-term exports to Japan.

The plant is located within the Petronas LNG complex in Bintulu,

currently the world’s largest integrated facility at a single location,

with a combined production capacity of 23 mtpa.

Apart from the three-train 8.1 mtpa MLNG plant, the complex also houses

the three-train 7.8 mtpa MLNG Dua plant as well as the two-train 6.8 mtpa

MLNG Tiga plant.

At the signing, Petronas was represented by its vice president of

exploration and production business Abdullah Karim, Petronas Carigali by

its managing director and chief executive officer Mohamad Johari Dasri,

Sarawak Shell by Shell Malaysia chairman Datuk Jonathan Chadwick, and

MLNG by its managing director Ahmad Nizam Salleh.