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Qatar to supply Malaysia with 1.5 million tpa of LNG

LNG Industry,

Qatargas has signed of a Heads of Agreement (HOA) to supply LNG to Petronas LNG Ltd.

Under the terms of the HOA, Qatargas will deliver 1.5 million tpa of LNG to Malaysia for twenty years beginning in 2013. This is equivalent to about 5% of Malaysia’s current annual average domestic natural gas demand, which is growing at a rate of around 6% per annum.

Datuk Anuar Ahmad, Executive Vice President, Gas & Power, Petronas, said, “Petronas views Qatargas as a strategic long term supplier of LNG for Malaysia, ensuring its security of supply. The signing of this HOA marks another important milestone in the growing relationship between Petronas and Qatar Petroleum.”

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

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