PETRONAS LNG Ltd. (PLL), a subsidiary of PETRONAS, has signed a 15-year Sale and Purchase Agreement (SPA) with S-OIL Corporation (S-OIL) to supply liquefied natural gas (LNG) to be used as fuel for S-OIL’s new plant operations and as feedstock for hydrogen production.
Under the long-term SPA, signed on 25 August 2017 in Kuala Lumpur, PLL is committed to deliver up to 0.7 million tonnes per annum (MTPA) of LNG to S-OIL beginning 2018. Signing on behalf of PLL was its Chairman, Ahmad Adly Alias while S-OIL was represented by Dr. Ryu Yul, its President, Corporate Strategy and Services.
Also present to witness the signing were PETRONAS Executive Vice President & Chief Executive Officer, Upstream, Datuk Mohd Anuar Taib and Othman Al Ghamdi, Chief Executive Officer of S-OIL.
Adly, who is also PETRONAS’ Vice President of LNG Marketing & Trading said, “This SPA is testament to PETRONAS’ focus in building long term relationship with committed partners. PETRONAS looks forward to create further value with S-OIL to ensure that we can deliver the most value-comprehensive solution.
“To-date, we have successfully delivered cargoes without fail and will continue to ensure security of supply and reliability to all of our buyers,” he added.
Backed by over 30 years of LNG experience, PETRONAS is recognised as a reliable and flexible LNG supplier, operating from its main supply base in Bintulu, Sarawak. In addition, PETRONAS has also diversified its LNG supply portfolio in recent years with the inclusion of Australia Gladstone LNG and the world’s first floating LNG facility located in offshore Sarawak.
S-Oil is an oil refining company, headquartered in Seoul, South Korea which was established in 1976 and produces petroleum, petrochemical and lubricant products.