Worth $7 billion, the long-term supply agreement also includes supply from LNG Canada when the facility begins operating by the middle of the decade.
The deal is for 2.2 million tons per annum, indexed to a combination of the Brent and Alberta Energy Company (AECO) indices.
Petronas introduced the AECO index to its customers in May, as the index, housed on the ICE NGX commodity exchange platform, is one of the most liquid spot and forward energy markets in North America.
Petronas VP of LNG marketing & trading, Shamsairi Ibrahim said:
- 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
Both firms agreed to collaborate in LNG, upstream exploration and development projects, refining, oilfield and engineering services, speciality chemicals, lubricants, and renewable energy.
