Malaysia's Petronas delivers LNG to South Korea's S-Oil

4/25/2018

KUALA LUMPUR, (Reuters) - Malaysian state-owned oil company Petroliam Nasional Berhad, better known as Petronas, on Tuesday said it had delivered its first liquefied natural gas (LNG) cargo to South Korea's No.3 refiner S-Oil Corp .

The delivery, via subsidiary Petronas LNG Ltd, marks the beginning of a 15-year supply contract. Petronas is committed to delivering up to 700,000 tonnes of LNG a year to S-Oil, Petronas said in a statement.

S-Oil announced in August that it had signed a long-term LNG supply contract with Petronas from March, 2018 through March, 2033. It plans to use LNG as fuel to run refining plants and as a feedstock for petrochemical products.

Petronas said the cargo was delivered from its Bintulu LNG complex in the East Malaysian state of Sarawak.

(Reporting by Emily Chow Editing by Joseph Radford)