Qatargas to Supply LNG to Malaysia

Qatargas has signed a heads of agreement with Petronas subsidiary Petronas LNG to supply liquefied natural gas to Malaysia.

According to the agreement, Qatargas will deliver one and half million tonnes per year of LNG for at least 20 years, beginning in 2013.

The LNG will be supplied from the Qatargas 2 joint venture, and will be shipped by the Q-Flex fleet of vessels to Malaysia’s first regasification terminal.

The terminal is being constructed on the west coast of Malaysia and is expected to start operations by mid-2012.

The LNG will meet approximately 5% of Malaysia’s annual average domestic natural gas demand, which is growing at a rate of around 6% per year.