Petronas announced that its subsidiary, Petronas LNG (PLL), has completed its maiden delivery of LNG to Yangon, Myanmar, with two LNG cargoes delivered in May and June 2020.
The delivery of the LNG cargoes is part of a master sale and purchase agreement between PLL and CNTIC VPower that was signed in early 2020. “Myanmar is the latest nation to adopt LNG as a form of cleaner energy.”
As part of the agreement, two LNG cargoes were sold on FOB basis, amounting to a total LNG volume of 190,000-CM. Both LNG cargoes were loaded at Petronas-run Bintulu LNG plant in Sarawak, and were delivered on 7 May 2020, onboard the (2020-built) CNTIC VPower Global LNG carrier and on 3 June 2020, onboard the (2015-built) 162,000-CM Golar Kelvin LNG carrier.
The Malaysian state-run operator has remarked that it has facilitated the delivery of the cargoes by granting conditional acceptance to CNTIC VPower Global vessel in allowing for the very first multi-lobe tank comprising two cylindrical tank sections (Bilobe type LNG vessel), to dock at the Bintulu where cooling-down services were also provided.
“In addition to the first two LNG cargoes, Petronas is also working with CNTIC VPower for further deliveries that will strengthen the relationship between both companies, which will facilitate the growth of their foothold in Myanmar’s fast-growing gas industry.”
CNTIC VPower is a JV between China national technical import and export Corp. (CNTIC) and VPower Group International Holdings. VPower Group is an integrated expert in distributed power generation, currently one of the largest owners and operators of distributed power stations in Myanmar, according to Petronas.
In 2019, CNTIC VPower won three LNG-to-power projects, Yangon’s Thanlyin and Thaketa and Rakhine’s Kyaukphyu, totalling 900 MW through a tender issued by the Myanmar’s ministry of electricity. "These projects are expected to start in 2020 to meet Myanmar’s growth in electricity demand where it is increasing annually by 15% to 17%.”