Petronas, Malaysia’s state-owned oil and gas company, is reportedly in advanced discussions with Commonwealth LNG to secure a term supply of liquefied natural gas (LNG) from the US company’s Louisiana LNG facility.
The deal is reputed to involve a minimum of one million tonnes per annum (mtpa), according to a report by Reuters, citing sources.
“Talks are at an advanced stage for at least 1mtpa,” one source was quoted as saying.
This move aligns with several Asian countries’ strategies to increase their US LNG contractual purchases, aiming to balance trade with the US and avoid high reciprocal tariffs.
Petronas has been emphasising its intention to expand its global LNG portfolio to satisfy rising demand.
The company indicated that some of its US contract supplies could be sold on the spot market to buyers in Europe or Asia. Neither Commonwealth LNG nor Petronas has commented on these discussions, the report said.
Commonwealth LNG is progressing with its 9.5mtpa plant development in Cameron, Louisiana.
The project received its export licence from the US Department of Energy in February, after a near two-year wait.
Since obtaining the licence, Commonwealth LNG has reported a surge in interest from potential buyers.
The facility has nearly 8mtpa of its capacity either contracted or under negotiation, with agreements including 2.5mtpa with Woodside Energy and 2mtpa with Kimmeridge, which owns a 90% stake in Commonwealth LNG.
Petronas holds 20-year agreements to purchase 1mtpa of LNG from Venture Global’s Plaquemines facility and 1.1mtpa from Cheniere Energy.
In December, the company also signed a 15-year contract with ADNOC for 1mtpa of LNG, with deliveries set to commence in 2028.
In March, Petronas confirmed ongoing discussions with Sarawak’s state-run energy operator Petros over the role of gas aggregator, a critical negotiation given that Sarawak houses more than 60% of Malaysia’s gas reserves.
The stalled talks between Petronas and Petros since last year have raised concerns regarding potential impacts on Petronas’ revenues, which significantly contribute to the federal government’s income.
