Regional LNG: PETRONAS signs LNG contract extension with JOVO
Friday, May 27 2016 - 12:47 AM WIB
Malaysia?s Petroliam Nasional Berhad (PETRONAS) continues its efforts in strengthening its Liquefied Natural Gas (LNG) market presence in China with the successful conclusion of a contract extension with JOVO Group Co., Ltd. recently.
The company said in a statement Thursday JOVO owns and operates the Dongguan LNG terminal based in Guangdong, South China, where stability of supply and competitive pricing are fundamental to its growth strategies.
?The contract extension signed between their respective subsidiaries will ensure a stable and significant increase of LNG supply to JOVO up until at least 2023 as the company seeks to expand its downstream market to meet end-users demand in China,? PETRONAS said.
PETRONAS, which operates from its main supply base in Bintulu, Sarawak, has successfully delivered conventional deliveries into Yangshan, partial cargo deliveries into Dongguan and small vessel deliveries into Shanghai Wuhaogao and Hainan Macun.
The company said deliveries into China will typically take only 5 days. PETRONAS said it has also diversified its LNG supply portfolio in recent years with the addition of Gladstone LNG and the upcoming Floating LNG projects in offshore Sabah and Sarawak.
The contract was signed by Ahmad Adly Alias, VP of LNG Marketing & Trading, Upstream PETRONAS, and Zhang Jiangguo, President and CEO of JOVO Group.
?PETRONAS is dedicated to ensuring that our buyers? requirements for stable and competitively-priced LNG supply are met. The extension of this contract proves that PETRONAS appreciates the Chinese culture of working together and understands what it takes for Chinese LNG buyers to grow and succeed in this market. We were here from JOVO?s infancy in the LNG market, and we will be here to support them to grow further,? said Ahmad Adly.
He added that PETRONAS, backed by a solid and stable supply portfolio, intends to grow its footprint in China by increasing its LNG supply to existing buyers and expanding its customer base.
Editing by Reiner Simanjuntak