PETRONAS Inks First LNG Deal Virtually With Tiger Clean Energy Limited
PETRONAS through its subsidiary, PETRONAS LNG Ltd. (PLL), recently concluded a Sale and Purchase Agreement (SPA) with Tiger Clean Energy Limited (TCEL) for the supply of liquefied natural gas (LNG) to TCEL’s LNG ISO Tank Filling Facility located at Bintulu, Sarawak. As part of the agreement, delivery of the LNG to China will be undertaken by TCEL, which will then be distributed to remote locations using TCEL’s ISO tanks.
This term sale which facilitates the delivery of LNG via LNG ISO tanks is a customer-centric and pragmatic solution undertaken by PETRONAS that supports and enables greater accessibility to cleaner energy, particularly for remote customers located away from physical LNG pipelines and customers with smaller parcel requirements. Furthermore, delivery of LNG via ISO tanks can also act as an agile back-up solution to meet excess demand with pace as compared to large vessel deliveries which 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 tele-conference, which is the first LNG deal of its kind concluded and commemorated on the virtual sphere for PETRONAS. The e-commemoration ceremony was witnessed by PETRONAS Vice President of LNG Marketing and Trading, Ahmad Adly Alias.
Commenting on the deal, Adly said: “The unconventional term deal with TCEL is a customer centric solution by PETRONAS as it goes beyond traditional LNG arrangements and 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, whereby our solutions are customised for market adaptability and customer requirements in a rapidly evolving industry,” he added.
Established in 1974, Petroliam Nasional Berhad (PETRONAS) is Malaysia’s fully integrated oil and gas multinational ranked among the largest corporations on FORTUNE Global 500®. As an integrated global LNG producer with over 35 years of experience, PETRONAS provides an uninterrupted supply of LNG to more than 25 countries around the world. PETRONAS has safely delivered more than 11,000 cargoes globally, sourced from its portfolio of facilities located in Malaysia, Australia and in the future, Canada. PETRONAS is also the first global energy player to introduce the floating LNG concept in 2016, the PFLNG SATU, and introduced its first deepwater FLNG, the PFLNG DUA, in 2019.