Malaysia’s Petronas Signs LNG Supply Deal With China’s CNOOC

Wedoany.com Report-Dec.25, Malaysian state-owned energy company Petroliam Nasional Berhad (Petronas) announced on Wednesday that it will supply Chinese offshore oil and gas company CNOOC with 1 million metric tons per annum of liquefied natural gas (LNG).

The agreement was signed between Petronas LNG Ltd and CNOOC Gas and Power Singapore Trading & Marketing Pte Ltd. This new deal builds on the long-standing cooperation between the two companies.

In 2021, Petronas entered into a 10-year LNG supply agreement with a subsidiary of CNOOC, valued at approximately $7 billion.

Both companies did not immediately respond to requests for additional details, including the duration of the current agreement.

Shamsairi M Ibrahim, Vice President of Petronas LNG Marketing and Trading, said: "This agreement marks an elevation of our relationship with CNOOC, advancing our shared commitment to energy security and a lower-carbon future."

The arrangement strengthens Petronas' role as a reliable LNG supplier in Asia's dynamic gas market. It also supports ongoing collaboration between the parties.

In a related development, Petronas signed a similar agreement in November with Canadian company Pembina Pipeline. That deal involves supplying 1 million tons per annum of LNG for 20 years from the Cedar LNG project.

This latest supply commitment with CNOOC highlights the continued importance of long-term LNG partnerships in meeting regional energy needs. The volume helps ensure stable supplies for industrial and energy use, contributing to reliable energy availability.

Overall, such agreements reflect the active development of energy cooperation between Malaysian and Chinese companies in the LNG sector. Petronas continues to expand its global LNG portfolio while maintaining strong ties with key partners in Asia.