Petronas extends gas supply deal with Gas Malaysia for $26.4bn

Malaysian national petroleum corporation Petroliam National (Petronas) has entered into a deal worth over $26.4bn to supply 492 million standard cubic feet per day (MMScfd) of natural gas to Gas Malaysia.

The 10-year deal will commence from 1 January 2013 and run until the end of 2022, with an option to extend for another five years.

MMC expects the contract will enable a long-term supply security of natural gas to Gas Malaysia’s existing customers.

The existing gas supply agreement, due to expire on Decemeber 31 of this year, involves supply of 382 MMScfd to the country, but the additional 110 MMScfd will allow Gas Malaysia to expand natural gas supply to new customers, reports Reuters.

Gas Malaysia sold 117.8 million mmbtu of gas throughout Malaysia in 2010, which is projected to increase significantly.

The company’s network of gas pipeline covers a total of 1,700 km reaching 33,700 residential and commercial customers, and around 690 industrial customers.

Nearly 55% of Gas Malaysia shares is held by MMC-Shapadu Holdings, 25% by Tokyo Gas – Mitsui Holdings with the rest 20%by Petronas Gas Berhad.