Petronas signs the first Canadian index LNG deal

China Petroleum & Chemical News Network, according to World Natural Gas News on May 7: Malaysia’s National Petroleum Liquefied Natural Gas Corporation (PLL) said that it has launched a new LNG pricing index based on the Canadian AECO Natural Gas Trading Center.

Petronas said that the sale of spot cargoes based on AECO pricing is an important step towards establishing a transparent price index in the LNG market.

Petronas is one of the five partners of Canada's LNG project; the company expects 14 million tons/year of commercial delivery in 2024, which is more accurate than the mid-decade estimate previously provided by the consortium.

The introduction of AECO is part of Petronas’ plan, which includes providing its customers with additional pricing options so that they can enjoy the benefits associated with it.

PLL CEO Ezran Mahadzir said: "As a customer-centric LNG solution provider, we are constantly seeking to provide customized solutions that meet our customers' energy needs, while providing customers with a competitive pricing structure.

AECO is the leading natural gas trading center in Western Canada.

Feng Juan excerpted from World Natural Gas

The original text is as follows:

PETRONAS INKS FIRST CANADIAN-INDEXED LNG DEAL

Malaysian state Petronas LNG (PLL) said May 7 it had introduced a new LNG pricing index based on the AECO gas trading hub in Canada.

Petronas said the sale of the spot cargo based on AECO pricing is a significant step towards establishing a transparent price index in the LNG market to not only complement Petronas' pricing diversification for cargoes but also for the supply of LNG from the Anglo-Dutch Shell- led LNG Canada project.

Petronas is one of five partners in the LNG Canada project; its estimate that commercial deliveries from the 14mn mt/yr first phase are expected in 2024 is a more precise operational date than the mid-decade estimate previously provided by the consortium.

The introduction of AECO is part of Petronas' plan to include additional pricing option for its customers, allowing them to enjoy its associated benefits.

"As a customer-centric LNG solutions provider, we continuously seek to provide customised solutions in meeting our customers' energy demand, whilst offering them a competitive pricing structure," PLL CEO Ezran Mahadzir said.

AECO is the leading gas trading hub in western Canada, and like the Henry Hub in the US it is traded in real time, with high liquidity backed by large gas reserves.