by HARIZAH KAMEL/ pic credit: Petronas
PETROLIAM Nasional Bhd (Petronas) signed a sale and purchase agreement (SPA) with Shanghai-based Tiger Clean Energy Ltd (TCEL) to supply liquefied natural gas (LNG) to TCEL’s LNG ISO Tank Filling Facility in Bintulu, Sarawak.
Petronas said under the agreement signed by its subsidiary, Petronas LNG Ltd, TCEL will be responsible for the delivery of the LNG to China while their ISO tanks will undertake its distribution to remote locations.
“This term sale is a customer-centric and pragmatic solution undertaken by Petronas that supports and enables greater access to cleaner energy, particularly for remote customers located away from physical LNG pipelines and customers with smaller parcel requirements,” it said in a statement yesterday.
The state-run oil company said delivery of LNG via ISO tanks could also act as an agile back-up solution to meet excess demand with pace as compared to large vessel deliveries that may be restricted by rigid delivery schedules.
Due to the ongoing Covid-19 outbreak followed by movement restriction controls implemented globally, the signing of the SPA was conducted through a video teleconference, the first LNG deal of its kind concluded and commemorated on the company’s virtual sphere.
Petronas LNG marketing and trading VP Ahmad Adly Alias said the unconventional term deal with TCEL is a customer-centric solution by Petronas as it goes beyond traditional LNG arrangements.
It also includes a modern approach to delivering LNG that enables greater access to cleaner energy.
“Through this modern approach in delivering LNG, we established a virtual pipeline that effectively enables LNG to reach off-grid customers who are not directly served by the natural gas distribution system in China.
“We achieved this through our unique LNG business model where our solutions are customised for market adaptability and customer requirements in a rapidly evolving industry,” he added.
Petronas provides an uninterrupted supply of LNG to more than 25 countries around the world and safely delivered more than 11,000 cargoes globally, sourced from its portfolio of facilities located in Malaysia, Australia and in the future, Canada.
It is also the first global energy player to introduce the floating LNG (FLNG) concept in 2016 and the first deep-water FLNG in 2019.