KUALA LUMPUR – Petronas LNG Ltd, a subsidiary of the national oil giant, has secured a 10-year term deal to supply liquefied natural gas (LNG) worth RM29 billion to CNOOC Gas and Power Trading & Marketing Ltd, a China National Offshore Oil Corp (CNOOC) unit.
The long-term supply agreement also includes supply from LNG Canada when the facility commences operations by the middle of the decade, said Petronas in a statement today.
The deal is for 2.2 million tonnes per annum for a 10-year period, indexed to a combination of the Brent and Alberta Energy Co (AECO) indices.
The term deal between Petronas and CNOOC is valued at approximately RM29 billion over 10 years.
“Petronas is proud to strengthen our decade-long relationship with CNOOC through this term LNG supply. Importantly, it reflects markets’ receptiveness and recognition of AECO-indexed LNG in the world’s largest LNG market as we seek to grow the use of LNG as a cleaner, more cost-effective form of energy,” said Petronas vice-president of LNG (marketing and trading) Shamsairi M. Ibrahim.
The agreement with CNOOC, China’s largest LNG importer, reflects Petronas’ commitment to ensuring supply security through an established, transparent and stable price index such as AECO in the LNG market, while providing additional pricing options for customers.
Once ready for operations, the LNG Canada project paves the way for Petronas to supply low-emission LNG to key demand markets in Asia.
The deal further strengthens the ongoing relationship established in 2006, and reflects Petronas’ commitment to supporting the endeavours of CNOOC and its associated companies to meet the fast-growing demand for cleaner energy, and China’s national aspiration of peak emissions and carbon neutrality. – Bernama, July 7, 2021
