Regional LNG: Petronas and Shell extend gas supply to MLNG

Petronas, Petronas Carigali Sdn Bhd, Sarawak Shell Bhd recently closed a Gas Sales Agreement (GSA) with Malaysia LNG Sdn Bhd (MLNG) for the supply of up to 400.40 trillion Btu of gas to the MLNG plant until the year 2020, The Edge daily reported.

Petronas said on Aug 29 ?the GSA effectively extends a similar arrangement between the same parties that had expired in March 2003?. MLNG had continued to receive gas under an interim arrangement prior to the conclusion of the latest GSA.

?Under the GSA, gas will be supplied from five dedicated fields offshore Sarawak developed under a production sharing contract in which Petronas, Petronas Carigali and Sarawak Shell are parties to,? it said.

MLNG owns and operates an LNG plant in Bintulu, which produces 8.10 million tonnes of LNG annually (mtpa) and part of an LNG facility with a combined production capacity of 23 mtpa.(*)