GODELL Gas International Sdn Bhd (GGI) has signed two liquefied natural gas (LNG) supply agreements with Petroliam Nasional Bhd (Petronas) through its subsidiary, Petronas Dagangan Bhd (PDB).
The supply agreement is to meet the growing demand for cleaner energy in Malaysia.
GGI president and group managing director Raja Azhar Raja Ismail said the fully integrated LNG supply and distribution company was honoured to form an alliance with Petronas in transforming the Malaysian LNG distribution landscape.
“We are committed to providing our expertise to make LNG easily accessible and ensure our clients’ cleaner energy needs are met,” he said in a statement today.
In the first LNG supply agreement, Petronas will supply LNG to GGI via the Regasification Terminal in Pengerang, Johor.
GGI will then market and deliver the LNG to off-grid customers throughout Malaysia via a virtual pipeline system (VPS) to storage and vaporiser facilities which are financed, built and operated by GGI at respective customers’ business premises.
“Moving forward, the industries in Malaysia that are not connected to the natural gas infrastructure will have the flexibility to switch to gas as an alternative form of cleaner energy.
“The business model adopted by GGI for Malaysian LNG initiatives offer zero investment entry by each customer for the migration to LNG as energy use,” said Raja Azhar.
The second LNG supply agreement will see GGI being Petronas’ bunkering trade partner.
The LNG supplied by Petronas will be distributed to LNG-fuelled vessels in Malaysian waters via ship-to-ship (STS) bunkering.
Under the agreement, GGI will secure the receiving LNG-fuelled vessels and facilitate the STS bunkering services.
“GGI is also committed to build, own and operate the first Malaysian flag 12,000 cubic metre LNG bunker vessel. The first of three series is expected to be delivered in the second half of 2022.
“With the LNG bunker vessel, GGI is positioning itself as one of the key players in LNG bunkering, supporting Petronas’ and Malaysia’s aspiration to become top player in LNG bunkering regionally,” GGI said.
In conjunction with the above initiatives, GGI has entered into a memorandum of understanding with CPP Petroleum Engineering (M) Sdn Bhd (CPP) and China Construction Bank (Malaysia) Bhd (CCB) to form a collaboration to support the VPS and LNG bunkering project.
CPP will support the projects as the turnkey contractor and project coordinator, while CCB will be the principal banker, facility agent and security agent. – Oct 14, 2020, Bernama
