Petronas and Vitol signed binding Heads of Agreement (HOA) for long-term LNG sale and purchase (SPA) agreement, on 1 October 2018. According to the agreement, Petronas will supply Vitol with approximately up to 0.8 million tonnes per annum for a period of up to 15 years on both Delivered Ex-Ship (DES) and Free on Board (FOB) basis, as from 2024.
PETRONAS through its subsidiary, PETRONAS LNG Ltd (PLL) and Vitol Asia Pte Ltd (Vitol) announced the signing of binding Heads of Agreement (HOA) for long-term liquefied natural gas (LNG) sale and purchase (SPA) agreement.
Under the terms of the agreement signed on 1 October 2018, the LNG supply to Vitol commencing in 2024 will be approximately up to 0.8 million tonnes annually for a period of up to 15 years on both Delivered Ex-Ship (DES) and Free on Board (FOB) basis.
The primary supply to Vitol will come from LNG Canada as well as from other PLL’s global LNG supply portfolio. LNG Canada is a major LNG project located in Kitimat, British Columbia, Canada which PETRONAS is one of the joint venture participants with equity holding of 25%.
Canada is PETRONAS’ second largest resource holder after Malaysia, with vast unconventional oil and gas resources in the North Montney.
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In the company’s press release, Vitol Head of LNG, Pablo Galante Escobar said that PETRONAS supplied Vitol’s first LNG cargo in 2005 and they have now extended their LNG relationship until at least 2038.
He added that Vitol is committed to the long-term development of the LNG market and its evolution to become a more flexible and tradeable commodity and that the deal will enforce the company’s ability to offer reliable and flexible LNG solutions globally.
