PETRONAS launches liquefied natural gas virtual pipeline system

Oil and gas firm Petroliam Nasional Berhad (PETRONAS) has launched its liquefied natural gas (LNG) virtual pipeline system (VPS) via its regasification terminal in Pengerang in the Malaysian state of Johor.

The project, which is the company’s latest customer-centric solution, aims at facilitating the growth of cleaner energy use across Peninsular Malaysia.

Developed by the Gas and New Energy business Gas & Power and marketed by Petronas Dagangan Berhad, the VPS solution delivers LNG using trucks equipped with cryogenic tanks to off-grid customers.

Industries in Peninsular Malaysia that are not connected to the natural gas infrastructure will now have an option to switch to gas as an ‘alternative form’ of cleaner energy with the help of the company’s VPS solution.

Earlier this month, PETRONAS delivered the first LNG to Continental Tyre Alor Setar Malaysia’s manufacturing plant as part of the project’s pilot phase.

PETRONAS Gas and New Energy executive vice-president and CEO Adnan Zainal Abidin said: “The introduction of the VPS solution forms a part of PETRONAS’ commitment to environmental sustainability and to drive the growth of natural gas usage in Malaysia.

“By creating an ecosystem and establishing the necessary infrastructure, we offer customers a cleaner and competitive form of energy to power their businesses.”

“Ultimately, through our VPS solution, we provide a one-stop centre for off-grid customers, covering supply, loading facilities and logistic services to ensure that their cleaner energy needs are met.”

In June this year, PETRONAS subsidiary Petronas LNG (PLL) delivered the first LNG import cargoes to Myanmar.

In May, PETRONAS signed a deal to supply LNG to an ISO tank-filling facility owned by Shanghai-based Tiger Clean Energy in the eastern state of Sarawak, Malaysia.

A fire and explosion at an oil refining complex owned by PETRONAS and Saudi Aramco in Malaysia’s southern state of Johor killed five people and injured one.