Geneva-based energy and commodity trading firm Vitol has signed a binding Heads of Agreement (HOA) for long-term liquefied natural gas (LNG) sale and purchase (SPA) with Petronas LNG.

Under the terms of the deal, which was signed on October 1, 2018, the LNG supply to Vitol is to commence in 2024 and would see a provision of 0.8 million tonnes of LNG per annum for a period of up to 15 years on both Delivered Ex-Ship (DES) and Free on Board (FOB) basis.

The primary supply to Vitol will come from LNG Canada as well as from other Petronas LNG’s global LNG supply portfolio.

“With a strong global supply portfolio, Petronas is able to provide flexible solutions within a changing and evolving LNG market,” Ahmad Adly Alias, Petronas Vice President of LNG Marketing & Trading, said.

“Petronas supplied our first LNG cargo in 2005 and we have now extended our LNG relationship until at least 2038,” Pablo Galante Escobar, Vitol Head of LNG, added.

LNG Canada is a major LNG project located in Kitimat, British Columbia, Canada which Petronas is one of the joint venture participants with equity holding of 25%. Canada is Petronas’ second largest resource holder after Malaysia, with vast unconventional oil and gas resources in the North Montney.