Pengerang, 1 November 2018 – PETRONAS through its subsidiary, PETRONAS LNG Ltd. (PLL), achieved a milestone with the successful completion of its first Liquified Natural Gas (LNG) supply operation at the Regasification Terminal Pengerang (RGTP) recently.
This follows the agreement between PLL and Uranos Vermögensverwaltungs GmbH & Co. KG, a joint venture company of Bernhard Schulte and Babcock International.
The LNG reload operation into the world’s largest LNG Bunker Vessel (LBV), Kairos with a capacity of 7,500 m3 took place at the RGTP jetty. Kairos departed from Hyundai Mipo Dockyard, Ulsan, South Korea, and received the LNG suppy from PLL, enroute to Europe.
PETRONAS Chief Executive Officer of PLL Ezhar Yazid Jaafar said: “We believe that small-scale LNG opportunities will increase from the utilisation of alternative cleaner fuel such as LNG. The new regulation of 0.5% Global Sulphur Cap to be imposed by the International Maritime Organisation (IMO) in January 2020, will make LNG the alternative fuel of choice for the shipping industry.”
The flexibility of RGTP in reload operation and the ability to also receive small scale LNG ships, positions PETRONAS as among the front runners in the LNG bunkering segment to meet the changing landscape of the marine fuel market.
The first LNG reload operation reaffirms PETRONAS’ role in spurring the growth of LNG bunkering in the region.
The success of the reload operation at RGTP is a result of close collaboration among all PETRONAS units including PETRONAS Gas Berhad, Pengerang LNG (Two) Sdn. Bhd. and other key stakeholders such as the Marine Department of Malaysia, Johor Port Authority and Johor Port Berhad.
Malaysian oil and gas company Petronas has set sights on tapping into the potential of burgeoning LNG bunkering market.
The strategy is in line with Malaysia’s plans to become the regional LNG bunkering hub, especially in the wake of growing uptake of LNG as marine fuel triggered by the industry’s switch to more-environmentally marine fuels.
“Efforts are now being put in place towards advocating LNG as the preferred marine fuel of choice. In close collaboration with industry associations like MOSVA, programmes are aligned to encourage migration; to develop necessary infrastructures to support a swift and effective migration of local (currently diesel-fueled) offshore support vessel (OSV) fleet to LNG, as the cleaner option,” the company said in its Activity Outlook for 2019-2020.
The company said that the first commercial LNG bunkering is poised for start-up by second half of 2019 from a number of facilities, starting with those based in Sg Udang, Melacca and Pengerang, Johor, followed by Kemaman, Terengganu and Labuan in Sabah.
Dual-fueled LNG-based engines are expected to be the future solution, according to Petronas.
On November 1st, Peronas LNG conducted its first LNG supply operation at the Regasification Terminal Pengerang (RGTP). The facility loaded the world’s largest LNG bunker vessel Kairos, which has just swung into operation.
The company believes that small-scale LNG opportunities will increase from the utilisation of alternative cleaner fuel such as LNG, on the back of the global sulphur cap entering into force in January 2020.