Statoil taps into Asian gas market

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KUALA LUMPUR, Malaysia, June 8 (UPI) -- Norwegian energy company Statoil announced it signed a liquefied natural gas delivery agreement with a Malaysian company to tap into the Asian market.

Statoil said it signed an agreement with Malaysian energy company Petronas to deliver LNG to an import terminal in Malacca City.

"We have had a very good cooperation with Petronas for many years and are very excited to land our first Asian LNG supply agreement with them," Eldar Satre, Statoil's executive vice president for Manufacturing, Marketing and Renewable Energy, said in a statement.

Increased domestic demand for natural gas prompted the country to build its first LNG import terminal in Malacca City. Statoil said about 35 billion cubic feet of LNG will be delivered under a flexible supply agreement good for the next 3.5 years.

The LNG import terminal at Malacca City is to open this summer. Statoil said in its statement that first LNG would arrive at the terminal by August.

The agreement was signed on the sidelines of an international energy conference in Malaysia.