Malaysia’s national oil company Petronas has started exporting liquefied natural gas in ISO tanks from its Pengerang filling facility, southern Malaysia to China.

With the operation of Petronas’ ISO tank filling facility at Pengerang, Malaysia is now poised to strengthen its position as an LNG ISO tank export hub, with filling facilities in West and East Malaysia that provide customers with an alternative and reliable LNG solution.

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The maiden shipment of LNG in ISO tanks was safely delivered to Shanghai from Pasir Gudang Port of Johor on 23 April, following a spot contract Petronas and Tiger Gas, an affiliate of Tiger Clean Energy.

Off-grid customers

“This inaugural LNG ISO tank export from Peninsular Malaysia is an innovative solution that enables LNG to reach off-grid customers, not only domestically, but also internationally, extending the reach of our ‘Virtual Pipeline System’ offering that we have started since late last year,” said Petronas vice president of LNG marketing and trading, Shamsairi M Ibrahim.

Petronas and Tiger Clean Energy in 2020 signed a long-term sale and purchase agreement for the supply of LNG to the latter’s LNG ISO tank filling facility in Bintulu, Sarawak.

As part of this agreement, Petronas’ LNG will be distributed to China using Tiger’s ISO tanks, with the first shipment sailing from Bintulu Port to the Port of Long Kou on 25 March.

“This is also a clear testament of Petronas’ commitment as a progressive energy solutions partner in reducing the carbon footprint of our customers’ existing and future operations,” added Shamsairi.