Malaysia's Petronas will trade LNG from Canada and the United States on the spot market

Image: Reuters Berita 24 English - According to a senior official at Malaysia's state energy giant Petronas , the company aims to reser...

Image: Reuters

Berita 24 English - According to a senior official at Malaysia's state energy giant Petronas, the company aims to reserve some liquefied natural gas (LNG) from its portion of a joint venture in Canada to trade on the spot market.

Shamsairi M Ibrahim, Petronas' vice president of LNG marketing and trading, also stated that the company planned to sell some U.S. gas purchased through a long-term contract on the spot market.

According to Shamsairi, Petronas has committed around 80 percent of its 25 percent ownership stake in the 14 million tonnes per annum (mtpa) LNG Canada project in Kitimat, British Columbia, to long-term contracts with consumers.

The remaining Petronas portion of the project, which is slated to come online around 2025, might be traded on the spot market or used to meet customers' seasonal demand, according to Shamsairi.

"We looked at the forward (pricing) curve and we'd like to stay engaged in the (spot) gas area," he explained.

Because of disruptions in Russian supplies following Western sanctions on Moscow for its invasion of Ukraine gas prices in Europe and spot LNG prices in Asia are projected to remain high.

Petronas recently inked a 20-year contract to lift 1 million tonnes per annum of LNG from Venture Global's Plaquemines LNG plant in Louisiana, broadening its portfolio.

"It's competitive, and we also have a position in the UK," Shamsairi said, adding that depending on arbitrage economics, the supply might be sold on the spot market to Europe or Asia.

He also stated that Petronas is in talks to extend some of its LNG contracts with Bintulu LNG, which are set to expire in the next year or two.