Petronas Secures LNG Supply Deal with China’s CNOOC

Petronas has agreed to supply 1 million metric tons per year of LNG to CNOOC, reinforcing Asian LNG trade flows as producers continue to secure long-term offtake.

(Reuters) — Malaysian state-owned energy firm Petroliam Nasional said on Dec. 24 it would supply Chinese offshore oil and gas company CNOOC with 1 million metric tons per annum of liquefied natural gas (LNG).

The agreement between Petronas LNG and CNOOC Gas and Power Singapore Trading & Marketing builds upon existing cooperation between the two companies, Petronas said in a statement.

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

Both CNOOC and Petronas did not immediately respond to Reuters' requests seeking details including the deal tenure.

Petronas signed a similar deal in November with Canadian oil and gas company Pembina Pipeline to supply 1 million tons per annum of LNG for 20 years from its Cedar LNG project.