PETRONAS Extends Contract to Supply LNG to China's JOVO Group
Malaysia's national oil company Petroliam Nasional Berhad (PETRONAS) announced Thursday it has extended a contract to supply liquefied natural gas (LNG) to China's JOVO Group, the owner and operator of the Dongguan LNG terminal in Guangdong, South China.
The contract extension, signed by Ahmad Adly Alias, vice president of LNG Marketing & Trading, Upstream PETRONAS, and Zhang Jiangguo, president and CEO of JOVO, will ensure a stable and significant increase of LNG supply to the Chinese firm up until at least 2023 as the latter seeks to expand its downstream market to meet end-users demand in China.
PETRONAS has successfully delivered LNG into China, usually taking 5 days for transportation, through conventional and partial cargo deliveries into Dongguan and small vessel deliveries into Shanghai Wuhaogao and Hainan Macun. In recent years, PETRONAS has diversified its LNG supply portfolio with the addition of Gladstone LNG and the upcoming Floating LNG projects in offshore Malaysia in Sabah and Sarawak.
“PETRONAS is dedicated to ensuring that our buyers’ requirements for stable and competitively-priced LNG supply are met. The extension of this contract proves that PETRONAS appreciates the Chinese culture of working together and understands what it takes for Chinese LNG buyers to grow and succeed in this market. We were here from JOVO’s infancy in the LNG market, and we will be here to support them to grow further,” Ahmad Adly said in the press release.
He added that PETRONAS intends to grow its footprint in China by increasing LNG supply to existing buyers and expanding its customer base.
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