Petronas yesterday sealed a US$3.2 billion (RM12.6) contract to supply liquified natural gas (LNG) to the Korea Gas Corp. for seven years.

In a statement, Petroliam Nasional Bhd. (Petronas) said its unit, Malaysia LNG Tiga Sdn. Bhd., signed the pact to supply the South Korean company up to two million tonnes of LNG annually.

Delivery will begin this month from MLNG Tiga's plant in Bintulu. Sarawak to receiving terminals in Incheon, Pyeong Taek and Tong Young in South Korea, it said.

Korea Gas Corp., whose customers are the Korea Electric Power Corp. and other city gas companies, is already importing up to two million tonnes of LNG annually from another Petronas unit under a 20-year contract, it said.

Six mil tonnes

With the contract, MLNG Tiga has now committed about six million tonnes of LNG annually to buyers from South Korea, Japan and Taiwan, it added.

MNLG Tiga's plant is housed in Petronas' huge LNG complex in Bintulu, which was officially opened Thursday by Prime Minister Dr Mahathir Mohamad.

The complex, which also houses two other LNG facilities, is set to become the world's largest integrated LNG facility with a combined production capacity of about 23 million tonnes a year and will propel Malaysia to overtake Algeria as the world's second largest LNG supplier. - AFP