KUALA LUMPUR, May 7 (Bernama) -- PETRONAS LNG Ltd (PLL) introduced the Canada Alberta Energy Company (AECO) index as a new LNG price indexation to its customers following the sale of a spot LNG cargo from Bintulu, Malaysia, to a buyer in Far East for August 2021 delivery.

AECO is a leading price benchmark for natural gas in Canada, similar to the United States’ Henry Hub, which is the natural gas price benchmark used as indexation to LNG price. It is transparent as the index is traded in real time, with high liquidity backed by large gas reserves.

The introduction of AECO is part of PETRONAS’ plan to include additional pricing option for its customers, allowing them to enjoy its associated benefits. With AECO, LNG buyer has the flexibility to further diversify its price exposures from established key price indices such as Japanese Crude Cocktail (JCC), Brent, Japan Korea Marker (JKM), US Henry Hub and UK National Balancing Point (NBP).

“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,” said Ezran Mahadzir, PLL’s Chief Executive Officer.

The sale of the spot cargo on AECO-linked price 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 Canada when it commences commercial delivery, expected in 2024.

PETRONAS sources LNG cargoes from its global portfolio of supply from Malaysia, Egypt, Australia and soon Canada, and is no stranger in offering variety of LNG price indices to suit its partners’ needs and preferences.

Issued by

Media Engagement
Group Strategic Communications
PETRONAS

SOURCE: PETRONAS

FOR MORE INFORMATION, PLEASE CONTACT:
Name: Nabil Basaruddin
Tel: +603-23924730
Email: nabil.basaruddin@petronas.com

--BERNAMA