Petronas enters Myanmar’s gas market with  first 2 LNG cargoes

by HARIZAH KAMEL/ pic by MUHD AMIN NAHARUL

PETROLIAM Nasional Bhd (Petronas) completed its maiden delivery of liquefied natural gas (LNG) to Yangon, Myanmar, with two LNG cargoes delivered in May and June 2020.

The delivery of the two LNG cargoes, done by its subsidiary Petronas LNG Ltd (PLL), is part of a master sale and purchase agreement signed between PLL and CNTIC VPower in early 2020.

The LNG cargoes were sold on a free-on-board basis, amounting to a total LNG volume of 190,000 cu m, said Petronas.

“Both LNG cargoes were loaded at Petronas LNG Complex in Bintulu, Sarawak, and were delivered on May 7, onboard the CNTIC VPower Global, and on June 3, onboard the Golar Kelvin,” it said in a statement yesterday.

PLL CEO Abdul Aziz Othman said the successful delivery of two LNG cargoes to CNTIC VPower marks a new era in the growth of LNG demand in the South-East Asian region.

“With Myanmar as the latest nation to adopt LNG as a form of cleaner energy, Petronas looks forward to being a long-term partner and supplier, leveraging our world-class reliability, innovative and customer-centric solutions,” he said.

Petronas said through its integrated value chain solutions, the delivery of the cargoes was facilitated by granting conditional acceptance to CNTIC VPower Global vessel in allowing for the first multilobe tank comprising two cylindrical tank sections, better known as Bilobe type LNG vessel, to dock at the Bintulu terminal where cooling-down services were also provided.

It also said it is working with CNTIC VPower for further deliveries that will strengthen the relationship between both companies.

This will facilitate the growth of Petronas’ foothold in Myanmar’s fast-growing gas industry after the successful entry of the first two LNG cargoes into the Myanmar gas market.

According to a statement by the state-run oil company, CNTIC VPower is a joint-venture company incorporated between China National Technical Import and Export Corp (CNTIC) and VPower Group International Holdings Ltd (VPower Group).

CNTIC is a large-scale state-owned enterprise in China with rich experience in domestic and overseas project contracting and project management, trade, tendering, commercial and technical consulting, investment and financing.

VPower Group is an integrated expert in distributed power generation, currently being one of the largest owners and operators of distributed power stations in Asia.

In 2019, the two companies as consortium won three LNG-to-power projects, Yangon’s Thanlyin and Thaketa, and Rakhine’s Kyaukphyu, totalling 900MW through a tender issued by Myanmar’s Ministry of Electricity and Energy Electric Power Generation Enterprise, said Petronas.

“These projects are expected to start in 2020 to meet Myanmar’s growth in electricity demand where it is increasing annually by 15%-17%,” it added.