Petronas Signs 20-Year LNG Supply Agreement with Venture Global, Strengthening Long-Term Energy Security

Malaysian state-owned energy company Petronas has finalized a 20-year liquefied natural gas (LNG) supply agreement with U.S.-based Venture Global LNG, marking a significant step in deepening energy ties between Southeast Asia and North America. The deal underscores the increasing importance of long-term LNG partnerships in securing stable energy flows amid a volatile global market.

Under the agreement, Petronas will purchase 1 million metric tons per annum (MTPA) of LNG from Venture Global’s CP2 LNG facility, located in Louisiana. The contract is part of Venture Global’s broader expansion plans, which aim to boost U.S. LNG export capacity and meet growing international demand for cleaner-burning energy.

Strategic Move to Strengthen Global LNG Footprint

For Petronas, this agreement is aligned with its strategy to diversify LNG sourcing and reinforce its position as a global LNG portfolio player. The company already manages one of the world’s most diversified LNG portfolios, with assets in Asia, Australia, and the Americas. The addition of long-term volumes from the U.S. strengthens its ability to meet contractual obligations while improving supply security for its clients in Asia and beyond.

U.S.-Asia Energy Link Deepens

This long-term deal highlights the growing role of the United States as a key LNG supplier to Asia. Venture Global has positioned itself as a competitive, low-cost LNG exporter, with modular construction techniques and early-stage customer off-take strategies accelerating project execution timelines.

The CP2 LNG project is expected to begin operations later this decade and will feature a nameplate capacity of 20 MTPA once fully developed. Petronas joins a growing list of international buyers that have committed to securing LNG volumes from this strategically located facility.

Global Energy Transition Context

The Petronas-Venture Global agreement comes at a time when global LNG demand is forecast to grow steadily over the next two decades, particularly in Asia, as economies seek to transition from coal and oil to cleaner energy sources. Long-term LNG contracts are becoming increasingly attractive to both buyers and sellers amid price volatility, geopolitical uncertainty, and the urgent need to decarbonize.

Conclusion

This 20-year LNG supply deal between Petronas and Venture Global marks a milestone in the evolving energy partnership between Asia and the U.S. It reflects the ongoing shift toward long-term, diversified energy sourcing strategies in an increasingly complex global energy environment. With this agreement, both companies are positioning themselves to play a critical role in the future of global LNG trade and the broader transition to low-carbon energy.