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).
This long-term supply agreement also includes supply from LNG Canada when the facility commences its operations by the middle of the decade.
“PETRONAS is proud to strengthen our decade long relationship with CNOOC through this term LNG supply. 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,” said PETRONAS Vice President of LNG Marketing & Trading, Shamsairi M. Ibrahim.
The agreement with CNOOC, China’s largest LNG importer, reflects PETRONAS’ commitment to ensuring the security of supply through an established transparent and stable price index such as AECO in the LNG market while providing additional pricing options for its customers. Once ready for operations, the LNG Canada project paves the way for PETRONAS to supply low greenhouse gas (GHG) emission LNG to the key demand markets in Asia.
The deal also further strengthens the ongoing relationship established since 2006 and reflects PETRONAS’ commitment in supporting the endeavor of CNOOC and its associated companies to meet the fast-growing demand for cleaner energy and support China’s national aspiration of peak emissions and carbon neutrality.
Recently, PETRONAS has made a major step to export LNG to China by using LNG ISO tanks from its filling facility in Pengerang, Johor Bahru.
Source Petronas Press Release