Petronas to supply carbon neutral LNG to China's Shenergy

Malaysian state-owned Petronas has signed an agreement with China’s Shenergy Group for the delivery of three carbon neutral LNG cargoes, it said on September 30.

The deal will see Petronas’ first delivery of carbon neutral LNG to China, to Shenergy’s terminals in Shanghai between October 2021 and March 2022. Last month, the company shipped its first carbon neutral LNG cargo to Japan.

“Petronas is proud to elevate our 15-year partnership with Shenergy that now includes the supply of carbon neutral LNG, reflecting our commitment in offering decarbonised LNG solutions to the market,” vice president of LNG marketing & trading, Shamsairi Ibrahim said.

Shenergy remains a major LNG buyer and partner to Petronas since 2006 following the first long-term supply agreement with its subsidiary Shanghai LNG Co. Both parties concluded another new 12-year term deal last year.

“As a long-term LNG partner and consumer, we are excited to receive Petronas’ delivery of carbon neutral LNG to China that aligns with the country’s ambition of hitting peak carbon dioxide emissions by 2030,” Shenergy vice president, Wang Zhehong said.