Malaysia's Petronas Agrees 10-year LNG Supply Deal with CNOOC Valued at $7 Billion
KUALA LUMPUR (Reuters) — Malaysia's state oil firm Petronas has signed a 10-year LNG supply agreement with a subsidiary of China's offshore oil and gas major CNOOC Ltd valued at about $7 billion, the firm said on Wednesday.
Petronas, or Petroliam Nasional Berhad, said the deal with CNOOC Gas and Power Trading & Marketing Limited is for 2.2 million tons per annum over a 10-year period.
"This long-term supply agreement also includes supply from LNG Canada when the facility commences its operations by the middle of the decade," Petronas said in a statement.
The deal is indexed to a combination of the Brent and Alberta Energy Company (AECO) indices, it said.
AECO is a Canadian natural gas price benchmark, similar to the Henry Hub index in the United States, but is not typically used as a pricing basis for LNG spot contracts.
In Asia, the S&P Global Platts' Japan-Korea-Marker (JKM) has been increasingly used as a pricing basis in spot contracts.
Petronas signed its first LNG cargo using the AECO index to a buyer in the Far East in May.
The deal with CNOOC reflects the markets' receptiveness and recognition of AECO indexed LNG into the world's largest LNG market, said Shamsairi M. Ibrahim, Petronas Vice President of LNG Marketing & Trading.
Related News
Related News
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- Malaysia’s Oil Exports to China Surge Amid Broader Import Decline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
Comments