PETRONAS and CNOOC deepen their long-term LNG partnership with a 1.0 MTPA supply deal supporting China’s clean energy transition.
PETRONAS has further consolidated its strategic position in the global liquefied natural gas (LNG) market by deepening its partnership with China National Offshore Oil Company (CNOOC) through a new long-term supply agreement. Acting via its wholly owned subsidiary, PETRONAS LNG Ltd., the Malaysian national energy company has signed a Sale and Purchase Agreement (SPA) with CNOOC Gas and Power Singapore Trading & Marketing Pte. Ltd.. Under the terms of the agreement, PETRONAS will supply 1.0 million tonnes per annum (MTPA) of LNG, reinforcing energy cooperation between the two companies and strengthening regional supply security.
The agreement represents an important milestone in the long-standing relationship between PETRONAS and CNOOC, both of which have collaborated for years across various segments of the energy value chain. By formalising this LNG supply arrangement, the two companies are building on a history of trust and operational collaboration while positioning themselves to respond to Asia’s growing demand for cleaner and more reliable energy sources.
Beyond its commercial significance, the SPA aligns closely with China’s broader economic development and environmental objectives. LNG is increasingly viewed as a transition fuel that can help reduce reliance on more carbon-intensive energy sources such as coal. The agreement therefore supports China’s national clean energy agenda, including its widely publicised “Dual Carbon” goals of peaking carbon emissions before 2030 and achieving carbon neutrality by 2060. By securing a stable supply of LNG, CNOOC can help facilitate a smoother energy transition while maintaining energy security for one of the world’s largest and fastest-evolving energy markets.
From PETRONAS’ perspective, the deal further strengthens its standing as a reliable long-term LNG supplier to China and the wider Asian region. Asia continues to account for the majority of global LNG demand growth, driven by industrial expansion, urbanisation, and policy-driven shifts toward lower-carbon fuels. PETRONAS’ diversified LNG portfolio and established production base place it in a strong position to meet these evolving requirements while maintaining flexibility and reliability for its customers.
Commenting on the agreement, Shamsairi M Ibrahim, Vice President of PETRONAS LNG Marketing and Trading, emphasised that the SPA represents more than a simple supply contract. He noted that the agreement elevates the relationship between PETRONAS and CNOOC, underscoring their shared commitment to energy security and a lower-carbon future. According to him, the partnership reflects PETRONAS’ broader approach of working closely with customers and partners to deliver dependable LNG solutions while supporting collective energy transition ambitions.
The long-term nature of the SPA also highlights the mutual confidence both parties have in each other’s capabilities and strategic direction. For CNOOC, securing LNG volumes from a trusted supplier like PETRONAS enhances supply diversity and stability. For PETRONAS, the agreement provides long-term demand visibility, enabling continued investment in LNG infrastructure and supply optimisation.
As regional and global energy systems undergo significant transformation, partnerships such as this play a critical role in balancing environmental goals with economic and energy security considerations. By extending their cooperation through this LNG supply agreement, PETRONAS and CNOOC are not only strengthening bilateral ties but also contributing to a more resilient and sustainable energy landscape in Asia.
