Petronas gets RM29bil China deal to supply LNG

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KUALA LUMPUR: Petronas LNG Ltd (PLL), a subsidiary of Petronas, has secured a 10-year term deal to supply liquefied natural gas (LNG) worth RM29 billion to CNOOC Gas and Power Trading & Marketing Ltd, 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 said.

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 US$7 billion (RM29 billion) over 10 years, it said in a statement here, today.

“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.

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