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THE ENERGY SECTOR
In 1977, Brunei Coldgas Sendirian Berhad
was established and took over the rights and
obligations of Coldgas Trading Limited. Almost
20 years later in 1996, Brunei Coldgas Sdn Bhd
and Brunei LNG Limited merged to form Brunei
LNG Sdn Bhd.
Brunei LNG is currently owned by the Government
of His Majesty the Sultan and Yang Di-Pertuan
of Brunei Darussalam (50 per cent), Mitsubishi
Corporation (25 per cent) and Shell Overseas
Holdings Limited (25 per cent).
Growing its assets and the future
Natural gas, aside from crude oil, is one of Brunei’s
major revenue earners. In addition to producing
LNG, Brunei LNG also produces liquefied petroleum
gases (LPG) as a by-product for domestic sales by
Brunei Shell Marketing Sdn Bhd.
Supplying LNG across the globe, Brunei LNG’s
current customers include its long-term, Japanese
foundation buyers: JERA, Tokyo Gas, Osaka Gas
and medium-term buyers: Shell LNG Marketing
and Trading, PETRONAS LNG Limited, as well as
Koch Supply and Trading. The LNG is transported
via five LNG vessels which are owned by Brunei
Gas Carriers Sdn Bhd.
Brunei LNG celebrated 40 years of successful
delivery of LNG cargoes to Japan in 2013 and
extended purchase agreements with the Japanese
consortium of buyers for another 10 years.
These two milestones signify the strength of the
relationship between Brunei LNG and the Japanese
foundation buyers, without whom Brunei LNG
would not be the successful project it is today.
Last year, Brunei LNG had the opportunity to
celebrate its golden jubilee with its Japanese
foundation buyers in Tokyo, Japan highlighting
the strong relationship built over the past five
decades between Brunei LNG and the buyers
as well as the two countries. Present as the
Guest of Honour, Director of Brunei LNG and
Representative of the Government of His Majesty
the Sultan and Yang Di-Pertuan of Brunei
Darussalam was Minister at the Prime Minister’s
Office and Minister of Finance and Economy II,
Dato Seri Setia Dr Awang Haji Mohd Amin
Liew bin Abdullah. Also present was Deputy
Minister of Energy Dato Seri Paduka Awang
Haji Matsatejo bin Sokiaw, representatives from
shareholders, management and senior officers of
Brunei LNG.
Brunei LNG diversified its portfolio of buyers in
2013 from end users to traders, signing Sale and
Purchase Agreements with Shell Eastern Trading
Pte Ltd and PETRONAS LNG Ltd, providing an
opportunity for Brunei LNG to not only diversify
its delivery destinations with different customers
but also providing indirect access to other
potential customers.
Brunei LNG signed a medium-term deal
agreement with Koch Supply and Trading in
2018, further diversifying Brunei LNG’s portfolio
of buyers and presenting the company with the
opportunity to explore outside usual markets.
Brunei LNG’s Plant has five liquefaction trains
capable of processing 9,700m
3
of gas per day, with
natural gas supplied by Brunei Shell Petroleum
Company Sdn Bhd (BSP) and Block B Joint Venture
(BBJV) comprising of Total E&P Borneo BV, Shell
and Petroleum Brunei. The Brunei LNG jetty,
which is 4.5km in length and transports the LNG
from the plant to the LNG vessels, features the
only rail operation in the country.
Potential future deepwater supply is expected
from a consortium of PETRONAS Carigali Brunei
Ltd, Shell Deepwater Borneo, Canam Brunei Oil
Ltd and Diamond E&P B.V.
The country’s gas resource volumes remain
strong, supported by continuous focus on