by TMR / Pic by BLOOMBERG
Petroliam Nasional Bhd (Petronas) will supply 700,000 tonnes of liquefied natural gas (LNG) to S-Oil Corp, after its subsidiary Petronas LNG Ltd (PLL) signed an agreement with the South Korea-based oil refining company.
Under the 15-year sale and purchase agreement, PLL will provide the natural gas by the start of next year, which is to be used as fuel for S-Oil’s new plant operations and as feedstock for hydrogen production.
PLL chairman and Petronas LNG marketing and trading VP Ahmad Adly Alias said the deal is a testament to the company’s focus on building longterm relationships with committed partners.
“Petronas looks forward to create further value with S-Oil to ensure that we can deliver the most value comprehensive solution,” Ahmad Adly said in a statement yesterday. “To date, we have successfully delivered cargoes without fail and will continue to ensure the security of supply and reliability to all of our buyers.”
The inked agreement comes in a challenging LNG market environment, with Petronas deciding to pull the plug on the C$36 billion (RM123 billion) Pacific Northwest LNG facility in British Columbia, Canada.
S-Oil operates out of Seoul, producing petroleum, petrochemical and lubricant products. — TMR