Petronas Signs LNG Supply Deal with Commonwealth LNG

Petroliam Nasional Bhd (Petronas) on Tuesday said that its subsidiary Petronas LNG Ltd has entered into a Liquefied Natural Gas (LNG) Sale and Purchase Agreement (SPA) with Commonwealth LNG marking a key milestone in its strategy to diversify its LNG portfolio through long-term supply from the US.

Under the SPA, Petronas will buy one million tonnes per annum (MTPA) LNG from Commonwealth LNG for a period of 20 years from Commonwealth’s 9.5 MTPA facility currently under development in Cameron, Louisiana.

The signing was commemorated in a document exchange ceremony between Petronas CEO Ezran Mahadzir and President and CEO of Commonwealth LNG Farhad Ahrabi on the side lines of Energy Asia 2025. Datuk Adif Zulkifli, Executive Vice President and CEO of Petronas Gas & Maritime Business and Shamsairi M Ibrahim, Vice President of LNG Marketing and Trading, Petronas Gas & Maritime Business.

Shamsairi said that this agreement underscores his company’s commitment to fostering global partnerships that ensure reliable, sustainable and long-term LNG supply for its customers. Collaborating with Commonwealth LNG will expand their supply node and strengthen presence in the global LNG market.

This collaboration signifies a key step towards a shared ambition to deliver sustainable energy solutions advancing strategic energy collaboration, contributing to regional energy security and reinforcing Commonwealth LNG’s role as a reliable player in the global LNG landscape.

Farhad Ahrabi said that said that they were pleased to establish this partnership and proud that Commonwealth LNG has been invited to help extend Petronas’ successful history of more than a half-century in serving global energy needs.

Third Regassification Terminal

Meanwhile, Petronas President and Group CEO Tan Sri Tengku Muhammad Taufik Tengku Aziz on Tuesday confirmed that work was being undertaken towards the development of Malaysia’s third regasification terminal.

Speaking to reporters, he said this was part of the government’s effort to address the expected surge in electricity demand, which was boosted by energy-intensive data centres. Petronas was already preparing for this scenario, recognising the future potential need of LNG imports.

“We are, and I think this has already been reflected in the government’s plans, working to get a third regasification terminal up and running,” he said.

According to Edge Malaysia report, Malaysia already has two existing regasification terminals, one in Sungai Udang, Melaka, and another in Pengerang, Johor. Petronas has interests in both via Petronas Gas Bhd, joined by partners.

While Petronas retains an advantageous position in East Malaysia to export LNG to its long-term partners for their energy security, the peninsula’s demand needs are growing, and a growing dependence on LNG is expected.

He also noted there will come a time when the peninsula’s production will be outstripped by demand, ushering the need for LNG imports. “I think, in tandem with the gas reforms, we can expect in the next four or five years, there is going to be growing dependence on LNG importation,” he said.

Regasification terminals are fundamental to the import of natural gas. To ensure economical transport, natural gas is cooled to sub-zero temperatures turning it into a liquid — enabling 600 times more volume to be shipped.

Once the LNG arrives at the importing country, the regasification terminal will vaporise the LNG into gas, allowing it to be distributed domestically via gas pipelines.