Petronas mulls over US$1 billion loan for Malaysian LNG project

MALAYSIA’S Petroliam Nasional is in talks with banks for a potential loan to fund a liquefied national gas (LNG) project, according to sources familiar with the matter.

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

Proceeds will fund the construction of a LNG facility in the South-east Asian nation, the sources said. Discussions with potential financiers are ongoing and the deal’s details could be subject to change, the sources added.

Petronas did not 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 agreed to sell the natural gas to the company for 15 years starting in 2028. BLOOMBERG