Keppel Gas has entered into a Heads of Agreement (HOA) with Petronas to purchase up to 1 million tpa of LNG, over a period of 10 years.
The HOA is conditional upon Keppel Gas obtaining the approval and import license from Singapore's Energy Market Authority.
Nicholas Lai Garchun, Executive Director of Keppel Infrastructure's Gas-to-Power Division and Azmi Ahmad, CEO of Petronas LNG, signed the HOA in Kuala Lumpur. Other senior management from Petronas and Keppel witnessing the signing included Dato' Wee Yiaw Hin, Executive VP and CEO of Upstream, Datuk Anuar Taib, Senior VP, Upstream Malaysia, Ahmad Nazri Wahab, Senior GM, Marketing, as well as Loh Chin Hua, CEO of Keppel Corporation, Tan Ek Kia, Director of Keppel Corporation and Ong Tiong Guan, CEO of Keppel Infrastructure.
Commenting on the agreement, Ong Tiong Guan said: "This is another of many steps that Keppel has committed, over the last decade and more, to support our government's efforts to improve the competitiveness of energy supplies to Singapore. The conclusion of the Heads of Agreement between Keppel and Petronas will be one of the key enablers for new possibilities and opportunities to be developed in Singapore's fast growing LNG industry."
The LNG will be sourced from Petronas LNG's extensive portfolio of LNG supply. This LNG purchase will boost Keppel Gas' portfolio of natural gas and allow Keppel Gas to offer competitive gas supply options to its customers in Singapore.
Ong added: "We are pleased to deepen our relationship with Petronas from our existing pipeline supply arrangements and we look forward to continue developing compelling gas supply propositions to our customers in Singapore across our pipeline and liquefied natural gas capabilities."
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/04112014/keppel-to-purchase-lng-from-petronas-1726/