Sarawak to take 10pct stake in Petronas LNG facility

Energy firm Petronas said the Sarawak state government will take an equity stake in one of its liquefied natural gas (LNG) production facilities.

The state government has signed a term sheet with Petronas for an equity participation in LNG Train 9 at the company's LNG complex in Bintulu, Sarawak, Petronas said in a statement yesterday.

A spokesperson later confirmed the state would take a 10 percent stake.

The Sarawak government had said in May it was actively negotiating to buy a 10 percent stake in the LNG Train 9 facility.

The ninth train, which began commercial operations last January, can produce 3.6 million tonnes of LNG per year, boosting the production capacity at the Petronas LNG complex to 30 million tonnes per year.

The state government had said in the past it wants to participate in Petronas' upstream and downstream activities in the state.

It has also called for Petronas to pay the state higher royalties.

Petronas, as the national energy company, has exclusive rights to the country's oil and gas reserves. Much of the country's gas reserves are located offshore Sarawak.

- Reuters