Business

Thai company buys 10% of Petronas LNG 9

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Syndicated News
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BANGKOK — July 27, 2019: PTTEP, the exploration and production arm of Thailand’s oil and gas giant PTT Group, has agreed to buy a 10 per cent stake in Petronas’ LNG 9 Sdn Bhd (PL9SB), a LNG liquefaction plant with a current capacity of 3.6 million per annum.

The investment worth US$500 million (RM2.14 billion) will be undertaken by PTT Global LNG Co. Ltd., a joint set up between PTTEP and PTT Public Company Ltd.

“The business cooperation with Petronas also allows PTTEP to gain a foothold in Malaysia, supporting further business expansion and investments in petroleum fields in the country, “ it said in statement after announcing its second quarter results here today.

The investment is in accordance with the company’s strategy in looking for business opportunities in the LNG value chain.

In an announcement to the Stock Exchange of Thailand today, PTTEP said its portion of the investment was US$250 million.

With the entry of  PTT Global LNG, the share proportion of PL9SB comprises Petronas (80 per cent), JXTG Nippon Oil and Energy Corporation through its subsidiary Nippon Oil Finance (Netherland B.V) (10 per cent) and PTT Global LNG (10 per cent).

Commercial operations of PL9SB commenced last January.

“The acquisition of an equity interest in PL9SB is part of PTTEP ‘s strategy to synergise with PTT in the integrated LNG value chain to meet the country’s growing energy demand,” said the company. — Bernama

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