Petronas inks 10-year LNG supply deal with China’s CNOOC

Malaysian energy giant Petronas said it has entered into a ten-year LNG supply deal with a unit of China National Offshore Oil Corporation (CNOOC).

This long-term supply agreement with CNOOC Gas and Power Trading & Marketing also includes supply from the Shell-led LNG Canada project, according to a statement by Petronas on Wednesday.

The firm has a stake in the giant LNG export facility under construction in Kitimat and scheduled to start operations by the middle of the decade.

Petronas said it would supply 2.2 million tonnes per annum of LNG, indexed to a combination of the Brent and Alberta Energy Company (AECO) indices.

It revealed earlier this year it had signed its first LNG supply contract linked to the Canadian gas price index.

The Malaysian energy giant said the new term deal with CNOOC has a price tag of about $7 billion over ten years.

Furthermore, Petronas VP of LNG marketing and Trading, Shamsairi M. Ibrahim, said the new deal strengthens the decade-long relationship between the two firms.

“Importantly, it reflects the markets’ receptiveness and recognition of AECO-indexed LNG into the world’s largest LNG market, as we seek to grow the use of LNG as a cleaner and cost-effective form of energy,” he said.

- Advertisements -

Most Popular

Brazil’s GNA gets approval to launch first LNG power plant

Brazilian joint venture Gas Natural Acu has commissioned the first plant as part of its LNG-to-power project in the...

Stena adds LNG power barge to its portfolio

A unit of Sweden’s Stena said it has expanded its jetty-less LNG offering with an integrated power barge (IPB). The...

Canada’s FortisBC shrinks expansion plans for Tilbury LNG

Canadian utility FortisBC is scaling back expansion plans for its Tilbury LNG facility in British Columbia. The second expansion phase...

More News Like This

China’s Jovo expands LNG business

Chinese privately-owned energy firm Jovo continues to boost its LNG business and has recently delivered its first cargo to...

BASF supplies gas treatment tech for Petronas’ second FLNG project

German chemical giant BASF said it has supplied its gas treatment technology for the latest floating LNG project developed...

Indian Oil, Petronas to work on LNG terminals

India’s top state oil refiner Indian Oil is expanding its existing joint venture with Malaysian energy giant Petronas to...

Malaysia’s Petronas posts higher LNG sales

Malaysian energy giant Petronas reported a rise in its liquefied natural gas (LNG) sales, boosted by higher demand and...