Petronas Sells 1 Million Tonnes LNG Annually to CNOOC
Petronas to Supply LNG to CNOOC, Expanding Energy Ties with China
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Malaysia’s national energy company, Petronas, has agreed to supply 1 million tonnes of liquefied natural gas (LNG) annually to china National offshore Oil Corporation (CNOOC), a state-owned Chinese oil and gas company. This deal builds upon existing energy cooperation between the two firms.
Deal Details and Existing Agreements
The agreement, announced on December 24, 2023, is between Petronas LNG and CNOOC Gas and Power Singapore Trading & Marketing. It represents an extension of their established partnership. Petronas did not disclose the financial terms of the new agreement.
This isn’t the first significant LNG supply agreement between Petronas and CNOOC. In 2021, Petronas signed a 10-year LNG supply contract with CNOOC subsidiaries valued at approximately US$7 billion as reported by Reuters.
expanding Global LNG Supply
petronas is actively expanding its LNG supply portfolio beyond China. In November 2023, the company entered into a similar agreement with Canada’s pembina Pipeline Corporation to supply 1 million tonnes per year of LNG from the Cedar LNG project for a period of 20 years according to a Petronas press release. This demonstrates Petronas’ commitment to meeting growing global demand for LNG.
The Cedar LNG project, located in british Columbia, Canada, is a joint venture between Pembina Pipeline and the Haisla Nation. The agreement with Petronas is a key step in bringing Canadian LNG to international markets.
Significance of the Agreements
These agreements highlight the increasing importance of LNG as a key energy source, particularly as countries seek to diversify their energy supplies and transition towards lower-carbon fuels. China, the world’s largest energy consumer, is heavily reliant on LNG imports to meet its growing energy needs.
For Petronas, these deals solidify its position as a major LNG supplier in the Asia-Pacific region and contribute to malaysia’s economic growth. The agreements also demonstrate the strengthening energy ties between Malaysia and China, and between Canada and Malaysia.