JX Nippon Oil, Petronas team on Malaysian LNG venture


Dateline 2016-06-03, Nikkei Asian Review:

 JX Nippon Oil & Energy will work with Malaysian state-run oil company Petronas to tap the Southeast Asian market for liquefied natural gas, aiming to take advantage of rising demand fueled by economic growth.

The Japanese company will invest roughly 60 billion yen ($552 million) in the operator of an LNG plant to be built by Petronas in northern Borneo. The plant, to debut in 2017, will have an annual capacity of 3.6 million tons, equivalent to 10% of Malaysia’s LNG market.

The LNG will be sold through a Petronas subsidiary to local power companies as well as to gas companies in Japan, South Korea and Taiwan. JX Nippon Oil plans to team with Petronas to market to other Southeast Asian countries as well. The Japanese company hopes to earn more than 100 billion yen over the life of the contract, which runs until 2037.

 

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