Malaysia's state oil company Petronas has signed a heads of agreement with its subsidiary, Petronas Gas, to develop the LNG terminal on the west coast and provide regasification services, Petronas Gas said in a filing to the local stock exchange, Bursa Malaysia, on Wednesday.
Under the HOA, Petronas Gas will develop the LNG terminal near Sungai Udang Port in Malacca. The project would consist of two floating storage units to receive and store LNG, an island jetty and regasification units, as well as subsea and onshore pipelines to transport the regasified LNG to Malaysia's Peninsular Gas Utilisation pipeline network.
The regasification facilities will have a maximum throughput capacity of 3.8 million mt/year, and is expected to be completed by July 31, 2012, Petronas Gas added.
Petronas and Petronas Gas officials could not be contacted for comment. A check on the Petronas web site also failed to provide any details of the HOA.
Platts reported in June that Petronas would build its its MR3 billion ($952 million) LNG regasification terminal in Malacca, citing a statement on the prime minister's office web site.
The LNG terminal is likely to receive gas from Petronas' share of the Santos-led Gladstone LNG project, which received conditional environmental approval from the eastern Australian state of Queensland in late May.
The GLNG project is the first of a number of planned LNG developments in the port city of Gladstone to receive state government approval. The Australian federal government gave its approval late October for the construction of two coalseam gas-based LNG projects at Gladstone, paving the way for BG Group and Santos to make final investment decisions on the multi-billion dollar investments before the end of 2010.
Santos holds a 45% stake in the GLNG project while Petronas has 35%. French major Total bought into the GLNG project in early September, agreeing to pay Santos and Petronas A$860 million ($845 million) for a 20% stake.
The GLNG project, which in 2007 was expected to cost A$7.7 billion, is to initially comprise two 3.6 million mt/year LNG production trains. Santos has been targeting a FID on the first of the two trains in December, with an FID on the second train planned for 12 months later.
GLNG has binding 20-year HOAs for the sale of 1.5 million mt/year of LNG to Total and 3.5 million mt/year to Petronas from the scheduled startup of the project in 2014. It is in talks with other Asian buyers, including Korea Gas Corporation, for additional offtake and equity sales.
Federal approval for the two projects was delayed in July by the then Australian environment minister Peter Garrett, who pushed back the decision by three months to October 11, citing the need for further studies on the disposal of the significant amounts of water and salt which would be removed from coalseams.
Under the HOA, Petronas Gas will develop the LNG terminal near Sungai Udang Port in Malacca. The project would consist of two floating storage units to receive and store LNG, an island jetty and regasification units, as well as subsea and onshore pipelines to transport the regasified LNG to Malaysia's Peninsular Gas Utilisation pipeline network.
The regasification facilities will have a maximum throughput capacity of 3.8 million mt/year, and is expected to be completed by July 31, 2012, Petronas Gas added.
Petronas and Petronas Gas officials could not be contacted for comment. A check on the Petronas web site also failed to provide any details of the HOA.
Platts reported in June that Petronas would build its its MR3 billion ($952 million) LNG regasification terminal in Malacca, citing a statement on the prime minister's office web site.
The LNG terminal is likely to receive gas from Petronas' share of the Santos-led Gladstone LNG project, which received conditional environmental approval from the eastern Australian state of Queensland in late May.
The GLNG project is the first of a number of planned LNG developments in the port city of Gladstone to receive state government approval. The Australian federal government gave its approval late October for the construction of two coalseam gas-based LNG projects at Gladstone, paving the way for BG Group and Santos to make final investment decisions on the multi-billion dollar investments before the end of 2010.
Santos holds a 45% stake in the GLNG project while Petronas has 35%. French major Total bought into the GLNG project in early September, agreeing to pay Santos and Petronas A$860 million ($845 million) for a 20% stake.
The GLNG project, which in 2007 was expected to cost A$7.7 billion, is to initially comprise two 3.6 million mt/year LNG production trains. Santos has been targeting a FID on the first of the two trains in December, with an FID on the second train planned for 12 months later.
GLNG has binding 20-year HOAs for the sale of 1.5 million mt/year of LNG to Total and 3.5 million mt/year to Petronas from the scheduled startup of the project in 2014. It is in talks with other Asian buyers, including Korea Gas Corporation, for additional offtake and equity sales.
Federal approval for the two projects was delayed in July by the then Australian environment minister Peter Garrett, who pushed back the decision by three months to October 11, citing the need for further studies on the disposal of the significant amounts of water and salt which would be removed from coalseams.
