Wednesday, Oct 5, 2022
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Petronas signs deal to supply carbon-neutral LNG to China’s Shenergy

Petronas Shenergy-IFM-image
Petronas will make the delivery between October and March next yearPetronas will make the delivery between October and March next year

Malaysia-based state-owned oil giant Petronas has announced that it has signed a deal to supply carbon-neutral LNG to China-based Shenergy Group. Details on the exact delivery dates and unclear, however, the delivery will be made between the period of October and March 2022. This will be Petronas’ first such shipment to China.

It was reported that Petronas will load the cargoes from its LNG complex in Bintulu, Sarawak in Malaysia and the same will be delivered to Shenergy’s terminals in Shanghai.

This was not the first agreement signed between Petronas and Shenergy. Last year, both parties signed a non-binding agreement which will see Petronas supply about 1.5 million tonnes per annum (mmtpa) of LNG to its Wuhaogou-receiving terminal in China for a 12-year term.

Earlier this week, Arif Mahmood, Petronas’ executive vice president and chief executive of downstream, said at the Platts APPEC 2021 conference that the company hopes to restart its Pengerang refinery-petrochemical complex by the end of this year. The complex is a joint venture between Petronas and Saudi Arabia state-owned oil company Saudi Aramco.

He said, “When it comes to refining, petroleum products, we remain cautious.” He further added that travel curbs continue to weigh on aviation fuel demand recovery. “We’ll see recovery hopefully towards the end of this year, early next year.”

Recently, it was also reported that China-based Sinopec’s plan to receive 6 million tonnes per year liquefied natural gas (LNG) has secured state approval. The company also added that it is planning to import 24.2 billion cubic metres of LNG this winter, without giving a comparison figure.

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