JOVO extends Petronas LNG supply deal

02 June 2016, Week 21 Issue 595

Malaysia’s state-owned Petronas has won an extension to its LNG supply contract with China’s JOVO and has pledged to expand its presence in the Chinese market further.

The contract extension until 2023 was signed recently by Petronas and JOVO through their respective subsidiaries and will “ensure a stable and significant increase of LNG supply” to the Chinese company, Petronas said on May 26, without giving any specific figures.

JOVO owns and operates the Dongguan LNG terminal in the southern Chinese province of Guangdong. JOVO received its first LNG cargo from Petronas in September 2013, thereby becoming the first private Chinese company to import LNG.

The Dongguan LNG terminal has a total storage capacity of 170,000 cubic metres. In addition to two 80,000 cubic metre storage tanks, the terminal has several smaller tanks.

“Petronas is dedicated to ensuring that our buyers’ requirements for stable and competitively priced LNG supply are met,” Petronas’ vice president of LNG marketing and trading, Ahmad Adly Alias, said. “We were here from JOVO’s infancy in the LNG market, and we will be here to support them to grow further.”

He added: “Petronas, backed by a solid and stable supply portfolio, intends to grow its footprint in China by increasing its LNG supply to existing buyers and expanding its customer base.”

The Petronas LNG complex in Bintulu, Sarawak, consists of three LNG plants owned and operated separately by Petronas’ joint venture companies – Malaysia LNG (MLNG), MLNG Dua and MLNG Tiga.

The Petronas LNG complex currently has a total of eight trains, with a ninth under construction by Japanese engineering firm JGC.

Petronas said it had successfully delivered supplies to Yangshan, made partial deliveries to Dongguan and smaller deliveries to Shanghai Wuhaogao and Hainan Macun. It added that deliveries to China would typically take just five days.

Edited by

Andrew Kemp

Editor

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