SINGAPORE, May 7, 2021: Malaysia’s state-owned Petroleum Nassil Bhad said on Friday that it had used Canada’s pricing indications as a basis for its first liquefied natural gas (LNG) deal. Signed. Petronas is one of the largest corporations globally. It is a petroleum-based company that sells Malaysian oil and gas. It is the major petroleum and gas regulatory authority in the country and is owned by and run through the government agents of Malaysia.
The company basically works on developing the value of these resources. That already exist in Malaysia and propose projects that can help in the development and discovery of more natural resources. The company said Paternas LNG sold spot LNG cargo to a buyer in the Far East for August shipments using the Canada Alberta Energy Company (EECO) Index. The ECO is Canada’s natural gas price, similar to the Henry Hub Index in the United States, but is not commonly used as pricing for LNG spot contracts.
In Asia, the S&P Global Platts ‘Japan Korea’ marker (JKM) has been increasingly used as a price base in spot contracts. But under the Royal Dutch Shell’s large-scale LNG Canada export project in British Columbia. Which is currently under construction and will produce the first LNG in 2024, a Singaporean businessman said. Vendors are urging sellers to pick up goods from the EECO price index, a trader said. LNG is a joint venture between Canada Shell, Petronas, PetroChina Co., Ltd., Mitsubishi Corporation, and Korea Gas Corporation Patinas.
The introduction of AECO is part of a plan to add additional pricing options for its customers. “The sale of spot cargo at the price attached to it is an important step towards establishing a transparent price index in the LNG market. Which can meet not only the supply of patterned price increases for cargo but also when it comes to commercial delivery. When it starts, it also caters to the supply of LNG from Canada, “he said. Other pricing standards used in spot LNG contracts include Japanese Crude Coal (JCC), Brent Futures, and UK National Balance Point (NBP).