(Fores, Oct 30, 2006) Petronas said its subsidiary Malaysia LNG Tiga Sdn Bhd has signed deals with Shanghai LNG Co Ltd to supply up to 3.03 mln metric tons of liquefied natural gas (LNG) annually for 25 years.

In a statement, Petronas said the agreements were signed on July 31 and then officially announced by Prime Minister Abdullah Ahmad Badawi and Chinese Premier Wen Jiabao in Nanning, during a bilateral meeting there today.

'The signing of the (agreements) marked a major breakthrough for Petronas into China's energy sector. This is Petronas' first LNG deal with China,' state-owned oil firm Petronas said in a statement.

The LNG will be supplied from the Petronas LNG Complex in Bintulu and delivered to Shanghai LNG's receiving terminal at Zhong Ximentang Island in Zhejiang province, the statement said.

Petronas LNG is currently the world's largest integrated LNG facility at a single location with a combined production capacity of approximately 23 mln tons per year, it said.

It said Shanghai LNG is a joint venture between Shenergy Group Ltd and CNOOC Gas & Power, with stakes of 55 pct and 45 pct, respectively.
source:Forbes