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TNBF signs GSA to deliver gas via LNG trial cargo

KUALA LUMPUR, Oct 2 -- TNB Fuel Services Sdn Bhd (TNBF), a wholly-owned subsidiary of Tenaga Nasional Bhd (TNB) has signed a gas sales agreement (GSA) with TNB and TNB Connaught Bridge Sdn Bhd for the delivery of gas via its maiden LNG trial cargo.

In a statement today, it said 3.5 trillion British thermal units gas will be delivered to TNB’s Tuanku Jaafar Power Station in Port Dickson and TNB Connaught Bridge Power Station in Klang.

“The gas from this LNG trial cargo is expected to be consumed fully by these two power plants within 14 days with a daily average quantity of 270,000 Gigajoules (GJ),” it said.

It added that the main objective of TNB bringing in its maiden LNG trial cargo is to test the third party access (TPA) arrangement via the Regasification Terminal in Sg. Udang, Melaka and the Peninsular Gas Utilisation gas pipeline network owned by Petronas Gas Bhd.

“At present, no other entity has ever brought in LNG cargo or delivered gas to the power generation sector, except for Petronas as the sole supplier,” it said.

In conjunction with the signing of the GSA, TNBF today also signed a master sales agreement for the delivery of gas via its maiden LNG trial cargo with Shell Malaysia Trading Sdn Bhd (SMTSB).

“The collaboration between TNBF and SMTSB, as one of Malaysia’s major energy companies, is to experience and manage the challenges together in testing the TPA system for the first time in Malaysia.

“The partnership between TNBF and SMTSB has resulted in a real cost saving in terms of delivered gas price which is below the regulated gas price,” it said.

-- BERNAMA

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