Petronas Pens Deal to Expand Chinese LNG Sales

Malaysia’s Petronas announced on January 20 it had signed a head of agreement (HoA) to supply around 1.5mn mt/yr of LNG to Shanghai-based importer Shenergy Group.

The supplies will be received at Shenergy’s Wuhaogou regasification terminal over a 12-year period starting in 2022, Petronas said. Under the HoA, the two companies have also agreed to collaborate in building and chartering new mid-sized LNG carriers to handle the cargoes.

Petronas has been a major LNG supplier to Shenergy since 2006, when it struck a deal to deliver 3mn mt/yr of LNG over a 25-year period to the firm’s Shanghai LNG joint venture with fellow Chinese state concern Cnooc.