KL seals gas supply pacts

KL seals gas supply pacts

KUALA LUMPUR (AFP): Malaysia's Petroliam Nasional Bhd.
(Petronas) yesterday sealed agreements with its oil exploration
unit and three partners to secure gas supply for its third
liquefied natural gas plant (LNG-3).

Petronas Carigali, the exploration arm of Petronas, U.S.-based
Occidental's Malaysian unit, Japan's Nippon Oil Co Ltd. and
Sarawak Shell Bhd. are to supply gas produced from the central
Luconia area, off Malaysia's oil-rich eastern Sarawak state.

Petronas chairman, Mohd Hassan Marican said the LNG produced
is to be sold to Petronas's existing customers in Japan, South
Korea and Taiwan, and possibly new markets in China, Thailand and
India.

Hassan declined to reveal the cost of the LNG-3 project, but
said it was smaller than its second LNG-2 plant, which cost 17
billion ringgit (US$6.8 billion).

"The LNG-3 plant will have a total annual capacity of 6.6
million tons when it begins operations in the year 2000," Hassan
said.