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Petronas strengthens Malaysia’s position as LNG ISO tank hub

Petronas has commenced the export of liquefied natural gas to China in ISO tanks from its filling facility in Pengerang, Johor.

The maiden shipment of LNG ISO tanks has been safely delivered to Shanghai from Pasir Gudang Port of Johor on 23rd April 2021, following a spot contract signed between Petronas and Tiger Gas (Hong Kong) Ltd, an affiliate of Tiger Clean Energy Limited (TCEL).

“This inaugural LNG ISO tank export from Peninsular Malaysia is an innovative solution that enables LNG to reach off-grid customers, not only domestically, but also internationally, extending the reach of our Virtual Pipeline System offering that we have started since late last year,” said Petronas Vice President of LNG Marketing and Trading, Shamsairi M Ibrahim. 

In 2020, Petronas and TCEL signed a long-term sale and purchase agreement for the supply of LNG to TCEL’s LNG ISO tank filling facility in Bintulu, Sarawak. As part of this agreement, Petronas’ LNG will be distributed to China using TCEL’s ISO tanks, with the first shipment sailed from Bintulu Port to the Port of Long Kou on 25th March 2021.

Commenting on the deal, Mr Ibrahim said: “This is also a clear testament of Petronas’ commitment as a progressive energy solutions partner in reducing the carbon footprint of our customers’ existing and future operations.”

With the operation of Petronas’ ISO tank filling facility at Pengerang, Malaysia is now poised to strengthen its position as an LNG ISO tank export hub, with filling facilities in West and East Malaysia that provide customers with an alternative and reliable LNG solution.