Vitol, Petronas agreement for LNG SPA
06 December 2018
PETRONAS through its subsidiary, PETRONAS LNG Ltd (PLL) and Vitol Asia Pte Ltd (Vitol) announced the signing of binding Heads of Agreement (HOA) for long-term liquefied natural gas (LNG) sale and purchase (SPA) agreement.
Under the terms of the agreement signed in October 2018, the LNG supply to Vitol commencing in 2024 will be approximately up to 0.8 million tonnes per annum 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 which PETRONAS is one of the joint venture participants with equity holding of 25%. Canada is PETRONAS’ second largest resource holder after Malaysia, with vast unconventional oil and gas resources in the North Montney.