Petronas Collaborates with Gazprom on LNG Ventures

Petgas Trading (UK) Limited, a UK subsidiary of Malaysian oil and gas multinational Petronas wishes to announce a number of collaborative ventures with Gazprom Marketing & Trading Limited, a UK subsidiary of the Russian gas giant OAO Gazprom.

The collaboration initially focused on opportunities related to the recently commissioned Dragon LNG terminal in Milford Haven, South Wales in which Petgas Trading (UK) Limited has a 50% share of the terminal's LNG re-gasification capacity. The terminal is able to supply 6 billion cubic meters of LNG importation annually, enough to cater to approximately 5% of the UK's gas consumption.

The venture is strengthened by Petronas' more than 20 years of experience and leadership in various aspects of the LNG business value chain and Gazprom Marketing & Trading Limited's strong position as a leading gas trader in the UK and northwest European gas markets.

In addition, both companies' affiliate trading entities are well positioned to deliver LNG cargoes into the terminal, which will enhance the terminal's utilization and facilitates greater diversity and security of supply to the UK market as a whole.

Thus far, Gazprom's affiliate Gazprom Global LNG has supplied two cargoes into the Dragon LNG terminal, including a commissioning cargo in August and Dragon LNG's first commercial LNG delivery in early September. Additional LNG cargoes are now planned through this coming winter and into 2010.

The companies have expanded the initial area of collaboration to include other gas marketing and trading activities, and discussions are on-going to deepen and extend the scope of the two companies' relationship which may include ventures beyond the UK gas market.