Petroliam Nasional Bhd (Petronas) recently signed a 20-year long-term liquefied natural gas (LNG) supply agreement with US energy company Venture Global Inc, further strengthening its position in the global LNG market.
Through this latest agreement, Petronas will purchase one million metric tons of LNG per year from Venture Global's CP2 project located in Louisiana, USA.
This collaboration is the second between the two companies, following a previous agreement involving the Plaquemines LNG plant which began exporting at the end of last year.
Interestingly, the CP2 project has not yet started operations, and Venture Global is currently actively seeking financing to launch their third export project.
Earlier, the company also carried out an initial public offering (IPO), but had to scale down the offering due to less than encouraging feedback from investors.
Meanwhile, Venture Global is currently facing arbitration proceedings with several customers over issues at its first plant, Calcasieu Pass, with a preliminary decision expected in the second half of this year.
PETRONAS is becoming more aggressive on the global stage, but is this a move to strengthen or a big risk?
