Malaysia seals $25bn China gas deal

Petronas, the Malaysian state energy firm, has said it will supply China with natural gas for the first time in a deal reportedly worth $25 billion.

    The contract is said to be worth $25bn over the next 25 years

    Petronas will supply more than three million metric tonnes of natural gas annually to China's Shanghai LNG Company, the Malaysian firm said in a statement on Tuesday.

      

    The value of the contract is estimated to be worth $25 billion based on current prices over the next 25 years, Malaysia's New Straits Times online news site said in a report.

     

    "This is Petronas first LNG deal with China. The deal will further enhance the economic ties between the two countries," the oil and gas producer said.

      

    The deal was unveiled by Abdullah Ahmad Badawi, Malaysia's prime minister, and his Chinese counterpart Wen Jiabao on the sidelines of the China-Asean summit in Nanning.

      

    Petronas said the LNG would be delivered from the Petronas LNG complex in Bintulu, Sarawak to Shanghai LNG's receiving terminal at Zhong Ximentang Island, in Zhejiang Province.

      

    Shanghai LNG is a joint venture company between Shenergy group, which owns 55 per cent of the company, and CNOOC Gas and Power, which owns the remaining 45 per cent.

     

    CNOOC Gas and Power is a wholly-owned subsidiary of China national offshore oil corporation.

    SOURCE: Aljazeera + Agencies


    YOU MIGHT ALSO LIKE

    Learn what India's parties' symbols mean by drawing them

    Learn what India's parties' symbols mean by drawing them

    More than 2,300 political parties have registered for the largest electoral exercise in the world.

    Visualising every Saudi coalition air raid on Yemen

    Visualising every Saudi coalition air raid on Yemen

    Since March 2015, Saudi Arabia and a coalition of Arab states have launched more than 19,278 air raids across Yemen.

    Why did Bush go to war in Iraq?

    Why did Bush go to war in Iraq?

    No, it wasn't because of WMDs, democracy or Iraqi oil. The real reason is much more sinister than that.