In a statement state-owned Petronas said, “[We] will supply the gas to Centrica via the LNG receiving terminal being developed by Dragon LNG at Milford Haven, Wales. The terminal will be able to process up to 6 billion cubic metres of gas a year and is scheduled to start operation in 2007.”

“The 3 billion cubic metres to be supplied to Centrica will make up the entire 50% of the terminal’s planned throughput capacity that we intend to use under a separate agreement reached between our partners in the Dragon LNG JV. The other half of the capacity will be used by the BG Group.

“Petronas will deliver LNG from our portfolio of current and future supply sources to Milton Haven via tankers owned by our subsidiary Malaysia International Shipping Corp Bhd. At the terminal, the LNG will be re-gassified before it is supplied to Centrica, which in turn will supply the gas to its British Gas customers,” added the firm without elaborating further on the deal.

Dragon LNG is made up of BG Group (50%), Petronas (30%) and Petroplus (20%).