Qatargas to Supply LNG to Malaysia

Qatargas has signed a heads of agreement to supply liquefied natural gas (LNG) to Petronas subsidiary Petronas LNG Ltd.

Under the terms of the agreement, Qatargas will deliver one and half million tonnes per annum of LNG to Malaysia for a period of at least 20 years, beginning in 2013.

Qatargas will supply the agreed volumes to Petronas from the Qatargas 2 joint venture, onboard its Q-Flex fleet of vessels to Malaysia's first regasification terminal.

Currently, the terminal is being constructed on the western coast of Peninsular Malaysia and is expected to become operational by mid 2012.

"It is the first time Qatargas has signed a HOA for supplying LNG to the South East Asian market. We are very pleased with this achievement as it represents the first long-term agreement for supplying LNG to one of the world's fastest growing LNG markets," Qatargas CEO Khalid Bin Khalifa Al Thani said. "We look forward to a strong and long-term relationship with Petronas, one of the world's premier energy companies. This milestone further demonstrates our commitment to supplying all corners of the globe with reliable LNG supplies."

Source: Bernama