Petronas purchases LNG from QatarGas

Qatar Liquefied Gas Co, known as QatarGas, agreed to supply
Malaysia’s state-owned Petronas LNG Ltd with 1.5 million metric tons of
liquefied natural gas annually.


The gas, cooled to liquid form for transport by sea, will be sold to
Malaysia for at least 20 years starting in 2013, the two companies said
in an e-mailed statement today. The gas equates to about 5 per cent of
Malaysia’s current gas demand, the companies said.


The agreement marks QatarGas’s first supply agreement to Southeast
Asia, QatarGas Chief Executive Officer Khalid Bin Khalifa Al Thani said
in the statement.


Qatar, the world’s largest LNG exporter, is diverting LNG originally
intended for the US to markets such as China amid growing US domestic
gas production and reduced dependence on imports. QatarGas said June 29
that it agreed with Energia Argentina SA to sell Argentina five million
tons of LNG a year starting in 2014.





Malaysia, the world’s second-largest LNG exporter in 2009, has turned to
imports to meet domestic gas demand which, according to the statement,
is growing at 6 per cent a year. -- Bloomberg