Malaysian Petronas Signs 10-Year LNG Supply Deal With CNOOC

MOSCOW (UrduPoint News / Sputnik - 07th July, 2021) The Malaysian Petronas oil and gas company and the China National Offshore Oil Corporation (CNOOC) have signed a long-term agreement on the supply of liquefied natural gas.

"PETRONAS LNG Ltd. (PLL), a subsidiary of PETRONAS, has secured a 10-year term deal to supply liquefied natural gas (LNG) to CNOOC Gas and Power Trading & Marketing Limited, a subsidiary of China National Offshore Oil Corporation (CNOOC)," Petronas said in a Wednesday statement.

The agreement also includes supply from LNG Canada when the facility starts its operations, Petronas specified, saying that the project paves the way for supplying low greenhouse gas (GHG) emission LNG to the key demand markets in Asia.

"The deal is for 2.2 million tonnes per annum (MTPA) for a 10-year period, indexed to a combination of the Brent and Alberta Energy Company (AECO) indices. The term deal between PETRONAS and CNOOC is valued at approximately USD 7 billion over ten years," the company said.

According to Petronas, the new agreement will strengthen the company's relationship with CNOOC, China's largest LNG importer, as the Malaysian oil and gas corporation seeks to grow the use of LNG as a cleaner and cost effective form of energy.