Petronas LNG has signed a liquefied natural gas supply deal with the Singapore trading arm of China National Offshore Oil Corporation (CNOOC).

The subsidiary of Malaysian state gaint Petronas said in a statement on Wednesday that it has entered into a Sale & Purchase Agreement (SPA) with CNOOC Gas & Power Singapore Trading & Marketing for the supply of 1 million tonnes per annum of LNG.

“The agreement builds on the long-standing working relationship between Petronas and CNOOC, strengthening cooperation in LNG supply while supporting China’s economic growth, and national clean energy agenda,” Petronas said.

China's national clean energy agenda includes “Dual Carbon” aspirations of peaking emissions before 2030 and achieving carbon neutrality by 2060, the company said.

Petronas LNG marketing and trading vice president Shamsairi M Ibrahim said: “This agreement marks an elevation of our relationship with CNOOC, advancing our shared commitment to energy security and a lower carbon future.”

However, the Malaysian player did not reveal the value and duration of the LNG supply deal.

Previously, in 2021, Petronas LNG signed a 10-year deal for 2.2 million tpa of LNG supplied to CNOOC Gas & Power. The long-term supply agreement had included volumes from the LNG Canada project, for which Petronas relinquished its 20% stake earlier this year.

Upstream has reached out to Petronas and CNOOC Gas & Power for further details on the latest LNG supply agreement.

Upstream earlier reported that analysts expect Chinese LNG demand to be lower than forecasted for 2025.