News Post
Petronas keeps UK LNG regasification capacity after sale of terminal stake
Malaysia’s state energy company Petronas has sold its stake in Britain’s Dragon LNG terminal but will retain its 2.2 MMtpy regasification capacity.
Petronas agreed to sell its 50% stake in Dragon, an import facility at the Milford Haven port in Wales, to British infrastructure investor manager Ancala.
“Petronas continues to hold the regas capacity in Dragon LNG,” the company said in an emailed comments.
Regasification capacity gives the Malaysian company a European delivery point for its LNG and is particularly valuable because Asian demand has been sluggish for most of the year as production, especially in the Atlantic Basin, has increased.
Petronas, which sells the LNG Malaysia produces, has an LNG offtake agreement with Qatar, the world’s top LNG producer. It also has LNG trading operations.
Malaysia is the world’s third largest LNG producer, although with 25 MMtpy, it is far behind Qatar’s 77 MMpty and Australia’s 67 MMpty, according to 2018 production statistics produced by industry group GIIGNL.
The United States, which had negligible LNG exports a few years ago, was placed fourth with 20 MMtpy. Petronas has an offtake agreement with U.S. firm Cheniere that will kick in once the Sabine Pass 6 terminal begins operations around 2025.
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