Petronas signs 20-year LNG supply deal with QatarEnergy

DOHA: QatarEnergy will supply Petronas 2 million metric tons a year (mtpa) of liquefied natural gas (LNG) in a 20-year deal, the Malaysian state-run firm said on Wednesday, helping address the country’s rising gas demand amid dwindling reserves.

The deal, signed at the LNG 2026 conference in Doha, is the first long-term supply arrangement between the two countries and follows Qatar’s 27-year LNG supply deal with Japan last week.

Petroliam Nasional, or Petronas, is actively pursuing investments in new natural gas fields abroad and seeking partnerships with foreign firms to boost extraction, while seeking LNG import deals amid falling local reserves.

“The long-term volumes secured through this agreement will play a critical role in reinforcing Malaysia’s energy supply security, ensuring stable and reliable LNG availability to meet growing demand in Malaysia,” Petronas said in a statement.

Malaysia, the world’s fifth-largest LNG exporter, expects to significantly boost its imports to address rising power demand from data centres.

Petronas has signed LNG import deals with Woodside Energy, Commonwealth LNG, Venture Global and ADNOC in recent years, and is planning a third regasification terminal.

QatarEnergy is betting on its massive North Field expansion project, which is expected to produce its first LNG in the second half of this year and help cement its position as the world’s second-largest LNG seller.

The project is expected to produce 126 mtpa of LNG by 2027, boosting QatarEnergy’s output by some 64% from its current 77 mtpa.

Qatar shipped out over 81 million tons of the fuel last year, data from analytics firm Kpler showed.