Global commodity trading company Vitol has signed a Heads of Agreement (HoA) paving the way for a long-term LNG sale and purchase (SPA) agreement with the Malaysian oil and gas company Petronas. As per the transaction, Petronas will supply 0.8 Mt/year (about 1.1 bcm/year) of LNG to Vitol on both delivered ex-ship (DeS) and free on board (FOB) basis starting from 2024 and for a 15-year period. The LNG supplies are expected to come from the LNG Canada facility in Kitimat, British Columbia (Canada) along with other assets in Petronas' portfolio.
LNG Canada will initially comprise two liquefaction units of 6.5 Mt/year each and could later be extended. Shell is the majority shareholder in the project (40%), in partnership with Petronas (25% through the North Montney LNG Limited Partnership), Petrochina (15%), Mitsubishi (15% through Diamond LNG) and Kogas (5%). The project is expected to be completed by late 2024 or early 2025.