Petronas signs new LNG supply deal with CNOOC for 1 mtpa, strengthening long-term Asia-focused energy cooperation.
Malaysia’s state-owned energy company Petroliam Nasional Berhad (Petronas) has entered into a new long-term liquefied natural gas (LNG) supply agreement with China’s offshore oil and gas major China National Offshore Oil Company (CNOOC), according to several media reports. The development highlights the continued strengthening of energy cooperation between Southeast Asia and China at a time when regional LNG demand remains robust.
Under the agreement, Petronas will supply approximately 1 million tonnes per annum (mtpa) of LNG to CNOOC. The deal was announced on Wednesday, December 24, and reflects the strategic intent of both companies to deepen collaboration across the LNG value chain. According to media reports, the supply arrangement will be executed through Petronas’ LNG business and CNOOC’s trading and downstream arms.
Petronas confirmed that the agreement was signed between its LNG unit and CNOOC Gas and Power Singapore Trading & Marketing, the Singapore-based trading and marketing subsidiary of CNOOC. In an official statement, Petronas noted that the new contract builds on an already well-established partnership between the two companies, which has evolved over several years through multiple LNG supply and trading arrangements.
The latest agreement underscores China’s growing reliance on long-term LNG contracts to ensure energy security and manage price volatility amid shifting global gas markets. For Petronas, the deal reinforces its position as a reliable LNG supplier in Asia and supports its broader strategy to expand market presence in key demand centres, particularly China, which remains the world’s largest LNG importer.
This is not the first LNG collaboration between the Malaysian energy firm and its Chinese counterpart. In 2021, Petronas signed a 10-year LNG supply agreement with a subsidiary of CNOOC. That earlier contract was reported to be worth approximately US$7 billion and marked a significant milestone in bilateral energy trade between Malaysia and China. The continuation of such agreements demonstrates sustained mutual confidence and long-term commercial alignment between the two companies.
Beyond its partnership with CNOOC, Petronas has been actively expanding its global LNG portfolio through additional long-term supply contracts. In November, the company entered into a similar agreement with Canadian oil and gas firm Pembina Pipeline Corporation. Under that deal, Petronas committed to supplying 1 mtpa of LNG for a period of 20 years from the Cedar LNG Project, a floating LNG facility under development in Canada.
Collectively, these agreements reflect Petronas’ strategy to secure long-term offtake arrangements while diversifying supply sources and strengthening relationships with international buyers. As global LNG markets continue to evolve, such contracts are expected to play a critical role in ensuring stable supply, supporting energy transitions, and facilitating cross-border energy cooperation, according to media reports.
