KUALA LUMPUR (July 28): Petronas said its latest collaboration with Thailand's state-owned oil and gas company PTT Public Company Ltd will be a growth catalyst for the company in the Thai gas market.

Petronas, which stands for Petroliam Nasional Bhd, announced today that it has inked an agreement with PTTGL Investment Ltd (PTTGLI) — a subsidiary of PTT Global LNG Company Ltd (PTTGL) — for PTTGLI's to take up a 10% interest in Petronas LNG 9 Sdn Bhd (PL9SB).

PL9SB is a Petronas subsidiary that owns the ninth LNG liquefaction train (Train 9) in the Petronas LNG Complex in Bintulu, Sarawak.  

PTTGL is a 50:50 joint venture between PTT and the latter's exploration and production arm, PTT Exploration and Production Public Company Ltd (PTTEP). Yesterday, PTTEP said PTTGLI took up the 10% stake for US$500 million.

Confirming the investment today, Petronas said in a statement that following PTTGLI’s participation, PETRONAS now owns 80% in PL9SB, while the remaining 10% is owned by JXTG Nippon Oil & Energy Corporation, through its subsidiary Nippon Oil Finance (Netherlands) B.V.

Petronas said Train 9 has a production capacity of 3.6 million tonnes per annum (mpta) and has started its commercial operations in the first quarter of this year, boosting the total output capacity of the Petronas LNG Complex to 30 mtpa.
 
With a production capacity of 3.6 million tonnes per annum (mpta), Train 9 started its commercial operations in quarter one of this year, boosting the total output capacity of the PETRONAS LNG Complex to 30 mtpa. 

Petronas Executive Vice President and chief executive officer for upstream Datuk Mohd Anuar Taib said the strategic partnership demonstrates Petronas’ ongoing commitment to grow its LNG business and pave ways for both parties to collaborate further in strengthening and maximising the integrated oil & gas value chain.
 
“This collaboration with PTT is also a catalyst for PETRONAS’ growth in the Thai gas market, as part of our long-term gas business strategy,” he said.

This partnership is PTT’s second collaboration with PETRONAS in the LNG business, following a LNG Sale and Purchase Agreement (SPA) signed with PETRONAS LNG Limited (PLL) in May 2017. 
 
Under the LNG SPA, PLL is committed to deliver up to 1.2 mtpa of LNG to PTT for a period of 15 years, till year 2031. The first cargo was successfully delivered on July 20, 2017 to the Map Ta Phut Terminal at Rayong, Thailand. 
 
PL9SB is PETRONAS’ fourth LNG company — after Malaysia LNG Sdn Bhd, Malaysia LNG Dua Sdn Bhd and Malaysia LNG Tiga Sdn Bhd — which collectively own all LNG modules in the PETRONAS LNG Complex. 

"With the addition of PL9SB and based upon the successful collaboration with existing international oil and gas partners built over the decades, the PETRONAS LNG Complex is one of the world’s largest LNG production facility in a single location," Petronas said.