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Malaysia's Petronas signs first term LNG supply deal in India

FILE PHOTO: A logo of a Petronas fuel station is seen against a darkening sky in Kuala Lumpur, Malaysia February 10, 2016. REUTERS/Olivia Harris/File Photo

KUALA LUMPUR (Reuters) - Malaysian state energy firm Petroliam Nasional Berhad, or Petronas, said on Thursday it has signed its first term agreement to supply liquefied natural gas (LNG) in India.

Petronas has signed a sale and purchase agreement to supply LNG to H-Energy Mideast DMCC (HEMD), it said in a statement. The value of the deal and the volume of LNG were not disclosed.

Dubai-based HEMD is part of the LNG arm of Indian real estate group Hiranandani Group.

Earlier this month, an Indian government official said India’s push to more than double the share of natural gas in its energy mix to 15 percent by 2022 will require a huge increase in imports and the construction of more LNG terminals.

The 70 million-tonnes-a-year target means India would need to import more than China took last year via both pipelines and tankers, and it would put Indian purchases close to the level of top importer Japan.

Petronas, the world’s third-biggest LNG supplier, has been trying to tap new markets for LNG at a time when global supply has exceeded demand. A company official had earlier flagged South Asia as an area of significant growth potential.

Reporting by A. Ananthalakshmi; editing by Richard Pullin