LNG PETRONAS ltd. sealed a 10-year term deal with China National Offshore Oil Corporation (CNOOC)’s subsidiary’s CNOOC Gas and Power Trading & Marketing Limited with a total value of $7 billion, PETRONAS announced.

Under the deal,  PETRONAS will be responsible for supplying 2.2 million tons per annum (MTPA) of liquefied natural gas (LNG) to CNOOC.

It also  includes securing LNG from Canada when the facility halts operation in the middle of the 10-years term.

“We are proud to strengthen our decade long relationship with CNOOC through this term LNG supply. Importantly, it reflects the markets’ receptiveness and recognition of AECO indexed LNG into the world’s largest LNG market; as we seek to grow the use of LNG as a cleaner and cost effective form of energy,” said PETRONAS’s Vice President of LNG Marketing & Trading, Shamsairi M. Ibrahim.