PETRONAS through its subsidiary, PETRONAS LNG Ltd (PLL) and Vitol Asia Pte Ltd (Vitol) announced the signing of binding Heads of Agreement (HOA) for long-term liquefied natural gas (LNG) sale and purchase (SPA) agreement.
Under the terms of the agreement signed on 1 October 2018, the LNG supply to Vitol commencing in 2024 will be approximately up to 0.8 million tonnes per annum for a period of up to 15 years on both Delivered Ex-Ship (DES) and Free on Board (FOB) basis.
The primary supply to Vitol will come from LNG Canada as well as from other PLL’s global LNG supply portfolio. LNG Canada is a major LNG project located in Kitimat, British Columbia, Canada which PETRONAS is one of the joint venture participants with equity holding of 25%. Canada is PETRONAS’ second largest resource holder after Malaysia, with vast unconventional oil and gas resources in the North Montney.
PETRONAS Vice President of LNG Marketing & Trading, Ahmad Adly Alias said, “With a strong global supply portfolio, PETRONAS is able to provide flexible solutions within a changing and evolving LNG market. PETRONAS is pleased to sign this long-term LNG supply deal with Vitol and hope that it will continue to enhance the long history of business collaboration with the Vitol Group.”
Vitol Head of LNG, Pablo Galante Escobar added, “We are delighted to be partnering with PETRONAS again, a global market leader and producer of natural gas and LNG. PETRONAS supplied our first LNG cargo in 2005 and we have now extended our LNG relationship until at least 2038. Vitol is committed to the long-term development of the LNG market and its evolution to become a more flexible and tradeable commodity. This supply deal with PETRONAS will further strengthen our ability to offer reliable and flexible LNG solutions to customers worldwide.”