Petronas Announces Collaboration With Gazprom

Published: 08-Oct-2009

Petgas Trading (UK) Limited (Petgas), a UK subsidiary of Petroliam Nasional Berhad (Petronas) announced a number of collaborative ventures with Gazprom Marketing & Trading Limited, a UK subsidiary of OAO Gazprom. The collaboration initially focused on opportunities related to the recently commissioned Dragon liquefied natural gas (LNG) terminal in Milford Haven, South Wales in which Petgas holds a 50% share of the terminal's LNG re-gasification capacity.

The terminal is able to supply six billion cubic meters of LNG importation annually, enough to cater to approximately 5% of the UK's gas consumption.

Both the companies' affiliate trading entities are well positioned to deliver LNG cargoes into the terminal to enhance the terminal's utilization and facilitates diversity and security of supply to the UK market as a whole.

Gazprom's affiliate Gazprom Global LNG has supplied two cargoes into the Dragon LNG terminal, including a commissioning cargo in August 2009 and Dragon LNG's first commercial LNG delivery in early September 2009. Additional LNG cargoes are now planned through this coming winter and into 2010.

The companies have expanded the initial area of collaboration to include other gas marketing and trading activities, and discussions are on-going to deepen and extend the scope of the two companies' relationship which may include ventures beyond the UK gas market.

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