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Petronas promises Keppel up to 10 million tonnes of LNG over 10 years

05th November 2014

Keppel Infrastructure Holdings, through its indirect wholly-owned subsidiary Keppel Gas, has entered into a heads of agreement (HoA) with Petronas LNG to purchase up to a million tonnes of LNG per year over 10 years

Petronas promises Keppel up to 10 million tonnes of LNG over 10 years
This LNG purchase will bolster Keppel Gas' portfolio of natural gas and allow Keppel Gas to offer competitive gas supply options to its customers in Singapore

The HoA is conditional upon, amongst others, Keppel Gas obtaining the approval and import licence from Singapore's energy market authority.

Formalising the HoA in Kuala Lumpur yesterday was Nicholas Lai Garchun, executive director of Keppel Infrastructure's Gas-to-Power Division, and Azmi Ahmad, CEO of Petronas LNG.

Other senior management from Petronas and Keppel witnessing the signing included Loh Chin Hua, CEO of Keppel Corporation, Tan Ek Kia, director of Keppel Corporation, and Ong Tiong Guan, CEO of Keppel Infrastructure.

"This is another of many steps that Keppel has committed, over the last decade and more, to support our government's efforts to improve the competitiveness of energy supplies to Singapore,” said Ong.

“The conclusion of the heads of agreement between Keppel and Petronas will be one of the key enablers for new possibilities and opportunities to be developed in Singapore's fast growing LNG industry."

The LNG will be sourced globally from Petronas LNG's extensive and growing portfolio of LNG supply. This LNG purchase will bolster Keppel Gas' portfolio of natural gas and allow Keppel Gas to offer competitive gas supply options to its customers in Singapore.

"We are pleased to deepen our relationship with Petronas from our existing pipeline supply arrangements and we look forward to continue developing compelling gas supply propositions to our customers in Singapore across our pipeline and liquefied natural gas capabilities," Ong added.

Currently, Keppel Gas has two existing agreements with Petronas for piped natural gas.

Related topics: 

LNG

Asia

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