Gas Malaysia, Petronas Sign $26 billion Gas Deal

Gas Malaysia has signed an agreement to buy natural gas from state owned oil and gas company Petronas, Gas Malaysia’s parent company MMC Corp said in a statement to the Malaysian stock exchange Thursday.  

The deal is reportedly worth more than $26 billion. The agreement for an equivalent of 492 million standard cubic feet per day would last until Dec. 31, 2022 with an option to extend for another five years, the statement said.

The new agreement will replace the existing one for a total of 382 million standard cubic feet per day, which expires Dec. 31, 2012.

Meanwhile, Petronas plans to set up a new liquefied natural gas train with a capacity of 3.6 million tonnes a year at its LNG complex on the island of Borneo. It would will help boost total capacity at its LNG plant in Bintulu in Sarawak to 27.6 million tonnes per annum,.