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.