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Under the sales and purchase agreement, Petronas LNG, a unit of Petronas, will purchase one million tonnes per annum (mtpa) of LNG for 20 years from Commonwealth’s planned facility, according to a statement by Petronas.
The signing was commemorated in a document exchange ceremony between Ezran Mahadzir, CEO of Petronas LNG, and Farhad Ahrabi, president and CEO of Commonwealth LNG, on Monday.
Petronas said that this deal will strengthen the company’s presence in the global LNG market.
The company’s LNG sales rose by 9 percent year-on-year to 35.7 million tonnes last year, compared to 32.90 million tonnes in 2023.
Sales also rose compared to 34.23 million tonnes in 2022.
Last month, Kimmeridge’s Commonwealth announced that it had signed a long-term LNG sales and purchase agreement with an Asian buyer.
This deal is also for 1 mtpa of LNG for 20 years.
Commonwealth said in the statement that this buyer is “one of the world’s leading energy corporations, operating comprehensively across the oil and gas value chain from upstream to downstream” and “one of the largest global suppliers of LNG.”
Several reports suggested at the time that Malaysia’s Petronas was in talks with Commonwealth to buy LNG.
Commowealth confirmed in a separate statement later on Tuesday that the major Asian energy company referenced in the company’s May announcement was Petronas.
The company said the SPA will become fully effective upon the satisfaction of customary conditions, including an affirmative final investment decision on the project.
“Commonwealth LNG currently has 4 mtpa of offtake under long-term agreement, with line of sight toward finalizing its commercial book ahead of a targeted final investment decision in Q3 2025 and anticipated first LNG production in 2029,” it said.
In February, Commonwealth said it was targeting FID on its planned LNG facility in Cameron Parish in September of this year after it received a conditional non-FTA approval from the US DOE.
(Updated with a Commonwealth LNG statement.)