KUALA LUMPUR (Dec 24): PETRONAS has agreed to sell one million tonnes of liquefied natural gas annually to China National Offshore Oil Corp (CNOOC).

The national oil-and-gas company officially known as Petroliam Nasional Bhd said on Wednesday its unit PETRONAS LNG Ltd signed the agreement with CNOOC’s wholly owned unit CNOOC Gas and Power Singapore Trading & Marketing Pte Ltd. The contract period was not disclosed.

“This agreement marks an elevation of our relationship with CNOOC, advancing our shared commitment to energy security and a lower carbon future,” said PETRONAS LNG Marketing and Trading vice-president Shamsairi M Ibrahim in a statement.

The deal comes at a time of surging imports of the chilled fuel by China to meet its energy transition and industrial demand. China is one of Asia's top gas buyers and Malaysia is its biggest supplier after Australia, Qatar, and Russia.

Last year, PETRONAS sold eight million metric tons of liquefied natural gas to China, accounting for around 10% of the country's total gas imports. In 2024, China imported about 77 million tonnes of liquefied natural gas.

“PETRONAS remains committed to delivering reliable and cleaner LNG solutions, working with partners to advance shared energy transition goals,” Shamsairi added.