(EnergyAsia, June 18 2012, Monday) — Norway’s oil and gas company Statoil said it has secured an agreement to deliver liquefied natural gas (LNG) to Malaysia, making this its first to the Asian market.
Statoil said it will deliver about one billion cubic meters gas under the flexible supply agreement that runs for three-and-half years. The volume will be the equivalent of the consumption of two 400MW gas-fired power plants for nearly one year.
The agreement was signed in Kuala Lumpur, Malaysia by Eldar Saetre, Statoil’s executive vice president for manufacturing, marketing and renewable energy, and M Sabarudin M Amin, CEO of Petronas LNG, earlier this month.
Statoil will deliver the first cargo in August to the LNG import in Melaka on the Malaysian west coast which is expected to start up next month.
Mr Saetre said: “We have had a very good cooperation with Petronas for many years and are very excited to land our first Asian LNG supply agreement with them.”
Rune Bjørnson, senior vice president for natural gas, said:
“There is an increased demand for LNG in Asia and we want to position Statoil to take part in that growth.”
Despite being the world’s third most largest LNG exporter, Malaysia expects to become a net importer in coming years as it has been struggling to fully replenish its natural gas reserves in the face of rising domestic demand.
Earlier, Statoil announced its decision to open a LNG trading desk at its office in Singapore on June 1.