PETRONAS LNG Ltd (PLL) has announced that it made its first liquefied natural gas (LNG) deal with the Canada Alberta Energy Company (AECO) index as a new LNG price indexation to its customers, following the sale of a spot LNG cargo to a buyer in Far East for August 2021 delivery, according to PETRONAS’ press release.
As per the statement, the introduction of AECO is part of PETRONAS’ plan to include additional pricing option for its customers.
Ezran Mahadzir, PLL’s Chief Executive Officer, stated “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.”
The statement also stated that 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.
It is worth noting that AECO is a Canadian natural gas price benchmark used as indexation to LNG price, similar to the United States’ Henry Hub.