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Petronas signs gas sales agreements

Posted on July 27, 2011, Wednesday

KUCHING: National petroleum group Petronas yesterday signed two Gas Sales Agreements (GSAs) governing the supply of natural gas from the Kebabangan Cluster Production Sharing Contract (KBBC PSC) area offshore Sabah to customers in the state and the Petronas LNG Complex in Bintulu.

The first agreement was signed between Petronas and KBBC PSC contractors Petronas Carigali Sdn Bhd (Petronas Carigali), Shell Energy Asia Ltd and ConocoPhillips Sabah Gas Ltd. Under the terms of the GSA, Petronas would purchase gas from the PSC contractors and would act as aggregator towards supplying the gas to customers in Sabah.

The second agreement would see Petronas and PSC contractors supplying gas as joint sellers to MLNG Dua Sdn Bhd at the Petronas LNG Complex in Bintulu. The two agreements would cover the supply of up to 750 million standard cubic feet per day (mmscfd) of gas to both customer sectors.

Deliveries should commence in the second half of 2014 via the Sabah Oil and Gas Terminal (SOGT) and the Sabah Sarawak Gas Pipeline (SSGP) facilities, owned and operated by Petronas Carigali.

Currently, Petronas Carigali holds a 40-per cent equity interest in KBBC PSC while its two partners each holds 30 per cent. The KBBC PSC is operated by the Kebabangan Petroleum Operating Company Sdn Bhd.

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