Petronas considering $1 billion loan for Malaysia LNG project, sources say

(Bloomberg) – Malaysia’s state-owned oil company Petronas (Petroliam Nasional Bhd) is in talks with banks for a potential loan to fund a liquefied natural gas project, according to people familiar with the matter.

The state-owned company, commonly known as Petronas, is seeking project financing of over $1 billion, said the people, who asked not to be named discussing private matters. The facility could carry a tenor around 15 years, the people added.

Proceeds will fund the construction of a liquefied natural gas facility in the Southeast Asian nation, the people said. Discussions with potential financiers are ongoing and the deal’s details could be subject to change, the people added.

Petronas didn’t respond to a request for comment.

Petronas operates one of the world’s biggest LNG terminals in Bintulu, in eastern Malaysia, and sources a bulk of its gas supply from the hydrocarbon-rich Borneo state. Last year, Abu Dhabi National Oil Co. agreed to sell the natural gas to the company for 15 years starting 2028.