KUALA LUMPUR (April 30): PETRONAS has agreed for the re-entry of ENEOS Xplora, the upstream unit of Japan’s largest oil company ENEOS, into a joint venture producing liquefied natural gas.

Subject to the fulfilment of certain closing conditions, ENEOS will hold a 10% equity stake in Malaysia LNG Tiga Sdn Bhd for the next decade, the national company officially known as Petroliam Nasional Bhd said in a statement on Thursday. Financial and transaction details were not disclosed.

“The collaboration with ENEOS which now spans three decades reflects that long-term conviction, one that continues to serve the energy interests of both nations well into the decades ahead,” said Tan Sri Tengku Muhammad Taufik, chief executive of PETRONAS.

The previous joint venture agreement expired in 2023. Malaysia LNG Tiga, or MLNG Tiga, has been supplying liquefied natural gas out of its Bintulu facility that has production capacity of more than seven million tonnes per year.

MLNG Tiga has been supplying Japanese buyers since it started operations in 2003.

“While further strengthening our partnership with PETRONAS, we will also work closely with our fellow shareholders, the Sarawak state government and Mitsubishi Corporation, to pursue new value creation during the energy transition,” said Yasuhiko Oshida, president of ENEOS Xplora.

Royal Dutch Shell sold its stake in MLNG Tiga for US$750 million in 2018, enlarging Sarawak state government’s stake to 25%. Petronas owns 60% in MLNG Tiga while Mitsubishi has 5%.