Asia/Pacific News
Petronas and Partner to Develop LNG Project in Malaysia
Malaysian state-owned oil and gas giant Petronas Gas Berhad has signed an agreement with Dialog Group Berhad to develop and build a liquefied natural gas (LNG) regasification facility in southern Malaysia.
Petronas will work with two Dialog subsidiaries, Dialog LNG Sdn Bhd and Pengerang LNG, to construct a facility that will have an initial send out capacity of 3.5 million tonnes per annum.
Under the terms of the agreement, Petronas will own 65 percent of a special-purpose vehicle called Pengerang LNG, with Dialog to own 25 percent and SSI Johor to own the remaining 20 percent.
The project is expected to cost RM 2.7 billion ($806.7 million).
Petronas currently has its hand in multiple LNG projects, having invested heavily in potential Canadian projects in British Columbia, where delays have caused CEO Shamsul Abbas to threaten a pull-out of the company's $10-billion investment.
