(EnergyAsia, November 4 2014, Tuesday) — Malaysia’s state-owned energy firm Petronas has signed an agreement with a subsidiary of Singapore’s Keppel Corp for the annual supply of one million tonnes of liquefied natural gas (LNG) for 10 years.
The Singapore firm said Keppel Infrastructure Holdings Pte Ltd (Keppel Infrastructure) signed the heads of agreement through its indirect wholly-owned subsidiary Keppel Gas Pte Ltd, but did not mention when the gas is expected to start flowing.
This will largely depend on Keppel Gas obtaining approval and receiving an import licence from Singapore’s regulator Energy Market Authority.
The LNG will be sourced globally from Petronas’s growing portfolio of assets to bolster the Singapore firm’s supply to its domestic customers.
Nicholas Lai Garchun, executive director of Keppel Infrastructure’s Gas-to-Power Division, and Azmi Ahmad, CEO of Petronas LNG, signed the agreement in Kuala Lumpur today. The signing was witnessed by senior officials of the two companies including Petronas’s upstream CEO, Wee Yiaw Hin, and SVP Anuar Taib, and Keppel Corp CEO Loh Chin Hua and director Tan Ek Kia along with Keppel Infrastructure CEO Ong Tiong Guan.
Dr Ong said: “This is another of many steps that Keppel has committed to support our government’s efforts to improve the competitiveness of energy supplies to Singapore.
“We are pleased to deepen our relationship with Petronas from our existing pipeline supply arrangements and we look forward to continue developing compelling gas supply propositions to our customers in Singapore across our pipeline and liquefied natural gas capabilities.”
Keppel Gas has two existing agreements with Petronas for the import of piped natural gas. In 2012, it agreed to import 43 million cubic feet per day (mmcf/d) of natural gas, building on a 2005 contract for up to 120 billion British Thermal Unit (Bbtu) per day or up to 115 million standard cubic feet (mmscf) per day.