Petronas Extends LNG Contract with China's JOVO Group

Petronas has strengthened its LNG market presence in China with the successful conclusion of a contract extension with privately held JOVO Group recently. 

JOVO owns and operates the Dongguan LNG terminal based in Guangdong, South China.

The contract extension will ensure an increase of LNG supply to JOVO up until at least 2023 as the company seeks to expand its downstream market to meet end-users demand in China, Petronas said on Thursday.

The contract was signed by Ahmad Adly Alias, VP of LNG Marketing & Trading, Upstream Petronas, and Zhang Jiangguo, President and CEO of JOVO Group. 

JOVO received its first imported LNG from Petronas on September 17, 2013, making it the first private company to import LNG cargo to China.

Earlier this month,  JOVO Group signed long term LNG offtake agreement with SCT&E LNG.

Guandong province has one of the highest capacities of coal-burning power, and Chinese leadership is now looking to curb its coal consumption by adopting clean burning energy alternatives, such as natural gas in the form of LNG.