Petronas Acquires LNG Stake from Shell and Mitsubishi

Petronas' 20-year joint venture agreement for Malaysia's first liquefied natural gas project expired on February 8, 2003.

In accordance with the terms of the JVA signed in March 1978 both Shell Gas B.V. and Mitsubishi Corporation have ceased to be partners in the joint venture and their respective 15 percent stakes in Malaysia LNG Sdn Bhd (MLNG) have been purchased by Petronas.

MLNG owns and operates Malaysia's first liquefied natural gas (LNG) plant. Located in Bintulu, Sarawak, the plant commenced operation in 1983 with a nameplate capacity of 6 million tons per annum (mmtpa). Currently, the plant produces 8.1 million tons (mmtpa) of LNG annually and the LNG is exported mainly to Japan on long-term contracts. In its 20 years of operation, MLNG has earned the trust and respect from the industry and has built a reputation as a reliable supplier of LNG.

The MLNG plant is part of the Petronas LNG Complex in Bintulu which houses another LNG plant owned and operated by MLNG Dua Sdn Bhd, Malaysia's second LNG venture. The MLNG Dua plant produces 7.8 mmtpa of LNG. A third plant, owned by MLNG Tiga Sdn Bhd, is expected to come on stream later this year with a 6.8 mmtpa capacity.

With a combined capacity of about 23 mmpta from the three plants, the Petronas LNG Complex is set to become the world's single largest LNG production facility. Currently, Malaysia supplies 21 percent of Japan's LNG requirements, 14 percent of Korea's and 38 percent of Taiwan's.