Petronas Gas Bhd yesterday signed a Heads of Agreement with Petroliam Nasional Berhad for the development of Liquefied Natural Gas Regasification Facilities by PGB and the subsequent provision of LNG regasification services by PGB to PETRONAS.
The Project will be located in the vicinity of Sungai Udang Port, Melaka and will encompass the following facilities:
(a) 2 floating storage units (FSUs) to receive and store LNG;
(b) An island jetty and regasification units to regasify LNG; and
(c) Subsea and onshore pipelines to transport the regasified LNG to the Peninsular Gas Utilisation (PGU) pipeline network.
The HOA serves to confirm the intention of PGB to proceed with the development of the Project and outlines the key perimeters pertaining to the regasification services to be provided by PGB to PETRONAS.
Following the execution of the HOA, PGB and PETRONAS will immediately proceed to negotiate and enter into a definitive and detailed Regasification Services Agreement . The Proposed RSA would contain the terms and conditions in respect of the usage by PETRONAS of the regasification unit/ terminal and subsea/onshore pipelines for the transportation of regasified LNG to the PGU pipelines network including the storage of LNG.
The Regasification Facilities will have a maximum send-out capacity of 3.8 million tonnes per annum. The expected completion date of the Project is 31st July 2012. Source of funding for the Project is expected to be from internally generated funds.
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Source: Petronas Gas Berhad, December 2, 2010;