Petronas shake hands with Shenergy Group Company Limited and signed a Heads of Agreement (HOA), in order to supply around 1.5 MTPA of liquefied natural gas (LNG) to its Wuhaogou receiving terminal in China. Specifically, the 12-year LNG agreement is scheduled to begin from 2022.
Through their collaboration, both sides will construct and charter new mid-sized LNG vessels for the cargo delivery.
At the same time, Petronas will strengthen its position in the marine fuel market and further support Shenergy’s increasing LNG demand.
The long-term LNG deal, which involves the delivery of mid-sized cargoes to unique LNG receiving terminals, is a testimony of PETRONAS’ commitment to customer-centricity and market adaptability.
…said Petronas Executive Vice President and Chief Executive Officer of Gas & New Energy, Adnan Zainal Abidin.
Moreover, this is not the first time that the two companies collaborate, as Petronas has been a major LNG supplier for Shenergy’s subsidiary, Shanghai LNG since 2006.
As the President and CEO of Petronas, Wan Zulkiflee said to Bloomberg tv, the company plans to allocate 5% of capex for renewable energy during 2020.
Energy demand is growing. In my view, we should develop all forms of energy. Petronas will invest in renewable energy, namely solar and wind. It’s about future-proofing the company.
Concluding, Pentronas estimates that the energy demand in Asia will increase by 3.5 to 4% per year, over the following years, with main leader being China.