Long-term LNG Deal
S-OIL announced on August 25 that it signed an agreement to purchase 700,000 tons of LNG per year from Malaysia's PETRONAS. The contract will run for 15 years from April of next year to 2033.
The signing ceremony was held at the PETRONAS headquarters attended by Osman Al Gamdi, CEO of S-OIL and Datuk Anuar Taib, CEO of PETRONAS Upstream in Kuala Lumpur, Malaysia on August 24.
S-OIL decided to directly introduce LNG for the first time to use it as a fuel for new plant operations and a raw material for hydrogen production. "The long-term contract with PETRONAS, Malaysia's state-owned oil company enables us to enhance the stability of plant operation by securing the stable supply of LNG used as a fuel and a raw material," S-OIL CEO Al-Gamdi said.
S-OIL will boost its profitability by turning Bunker-C which has been used as a fuel for production facilities now under construction into a raw material for high-value-added products such as gasoline and propylene when its RUC & ODC facilities are put to work in the first half of next year.
In addition, replacing Bunker-C which generates a large amount of greenhouse gas emissions such as carbon dioxide will empower S-OIL to better cope with environmental regulation trends that are being strengthened around the world.