The wholly-owned subsidiary is located in the Dishui Lake Financial Bay within Shanghai’s Lin-gang Special Area, according to a statement posted by the Lin-gang Special Area Administration on its website.
The move marks Petronas’ first China-based entity dedicated exclusively to LNG operations, further strengthening Lin-gang’s emerging international energy trading ecosystem, it said.
“With LNG imports and domestic distribution as its main focuses, the Shanghai subsidiary will provide reliable, low-carbon energy solutions to customers, aligning with the nation’s vision for a low-carbon future,” the statement said.
LNG Prime invited Petronas to comment on the new move.
China is the world’s largest importer of LNG.
Last month, a unit of Petronas entered into a sale and purchase deal with a subsidiary of China National Offshore Oil Corporation (CNOOC).
Under the SPA, Petronas will deliver 1 million tonnes per annum (mtpa) of LNG to CNOOC Gas and Power Singapore Trading & Marketing.
The company said the agreement builds on the long-standing working relationship between the two firms, “strengthening cooperation in LNG supply while supporting China’s economic growth, and national clean energy agenda, including the “dual carbon” aspirations of peaking emissions before 2030 and achieving carbon neutrality by 2060.”
In 2021, Petronas entered into a ten-year LNG supply deal with CNOOC Gas and Power Trading & Marketing.
This long-term supply agreement also includes supply from the Shell-led LNG Canada project, where Petronas is a shareholder.
In Malaysia, Petronas operates the giant Bintulu LNG plant with a capacity of nearly 30 mtpa.
Petronas also operates two floating LNG facilities, namely the 1.2 mtpa PFLNG Satu, and the 1.5 mtpa PFLNG Dua, both located offshore Sabah, and is buidling a third unit.
