Petronas to sell 10% interest in PL9SB to PTTEP’s affiliate for $500m
Petronas has signed an agreement to sell 10% interest in its subsidiary Petronas LNG 9 (PL9SB) to an affiliate of Thailand's state-owned company PTT Exploration and Production Public Company (PTTEP) for around $500m.
The agreement was signed by PTTGL Investment (PTTGLI), a company recently established by PTTEP’s subsidiary PTT Global LNG Company (PTTGL).
PTTEP will contribute around $250m of the aggregate amount.
Once the deal is completed, Petronas will have 80% ownership in PL9SB, while JXTG Nippon Oil & Energy and PTTGLI will each own a 10% interest.
Located in the Petronas LNG Complex in Bintulu, Sarawak, Malaysia, PL9SB owns the ninth LNG liquefaction train and other related facilities and has an annual LNG production capacity of 3.6 million tonnes.
PTTGL is a 50:50 joint venture company between PTTEP and PTT.
The acquisition of stake is consistent with PTTEP’s strategy to synergise with PTT in the integrated LNG value chain to meet Thailand’s increasing energy demand.
Funding for the overall acquisition cost will be met by 40:60 debt and equity, wherein PTT and PTTEP will jointly provide equity funding to PTTGLI.
Meanwhile, the debt funding to PTTGLI will be arranged by both companies’ treasury centres.
Commercial operations were started in January this year at PL9SB’s Train 9 to deliver LNG to Petronas’ customers across Asia.