JX Nippon to buy 10% stake in Petronas LNG unit

By Curious

The train, with a production capacity of 3.6 million tonnes per annum, is expected to commence commercial operations in the first quarter of 2017.

Petronas and JX Nippon Oil & Energy (JX NOE) announced on Friday (Jun3) that the two parties have signed an agreement for the sale and purchase of equity in Petronas LNG 9 (PL9SB), a wholly-owned subsidiary of Petronas.

JX Nippon to buy 10% stake in Petronas LNG unit

Petronas PFLNG Satu - Image: LRanger

Under the agreement, JX NOE will purchase a 10 per cent stake in PL9SB, which owns the ninth LNG liquefaction train within the Petronas LNG Complex in Bintulu, Sarawak, Malaysia. The train, with a production capacity of 3.6 million tonnes per annum, is expected to commence commercial operations in the first quarter of 2017.

JX NOE is a unit of Japan's biggest oil refiner JX Holdings.

A ceremony to commemorate the agreement was held in Kuala Lumpur on Thursday (Jun2), attended by Petronas President and Group CEO Wan Zulkiflee Wan Ariffin and JX NOE President Tsutomu Sugimori with the presence of senior leaders from both organisations.

“This sale demonstrates Petronas’ ongoing commitment to grow our LNG business with the support of trusted partners,” said Mr Wan Zulkiflee. “JX NOE has played a key role in the development of MLNG Tiga and we look forward to their similar contribution to PL9SB,” he added.

“We would like to thank Petronas for choosing JX NOE as a trusted partner. We are committed to work together for the future growth of LNG business,” said Mr Tsutomu Sugimori. “As an integrated energy conversion company, JX NOE will continue to strive for the stable supply of energy,” he added.

JX NOE’s entry into PL9SB marks its second participation in Petronas’ LNG projects, in addition to its existing 10 per cent equity interest in MLNG Tiga.

With the addition of the state-of-the-art liquefaction plant owned by PL9SB, the Petronas LNG Complex will now have the capacity to produce approximately 30 million tonnes per annum to further cement Petronas’ position as a leading and reliable LNG supplier. The strategic partnership of Petronas and JX NOE will strive towards expanding the LNG business and ensuring a reliable supply of energy for their customers.

A marketing support agreement was also signed between Petronas LNG Limited and JX NOE.

PETRONAS' President and CEO Datuk Wan Zulkiflee exchanging documents with JX NOE Representative Director and President, Mr Tsutomu Sugimori witnessed by PETRONAS' Executive Vice President, Upstream, Datuk Mohd Anuar Taib and JX NOE Director, Senior Vice President, Mr Susumu Hara.

Source: JX Nippon Oil & Energy