PETRONAS, through its subsidiary, PETRONAS LNG Ltd (PLL), and Vitol Asia Pte Ltd (Vitol) have announced the signing of binding Heads of Agreement (HOA) for a long-term LNG sale and purchase (SPA) agreement.
Under the terms of the agreement signed on 1 October 2018, the LNG supply to Vitol commencing in 2024 will be up to approximately 0.8 million tpy for a period of up to 15 years on both delivered ex-ship (DES) and free on board (FOB) basis.
The primary supply to Vitol will come from LNG Canada as well as from other PLL’s global LNG supply portfolio. LNG Canada is a major LNG project located in Kitimat, British Columbia, Canada, in which PETRONAS is one of the joint venture participants with equity holding of 25%. Canada is PETRONAS’s second largest resource holder after Malaysia, with vast unconventional oil and gas resources in North Montney.