LNG

Malaysian shipping group MISC has accepted a letter of award from Petronas for the charter of five additional LNG carriers, committing to a newbuilding programme at China’s Hudong-Zhonghua, with construction due to begin in 2027 and deliveries targeted for 2030.

Rising LNG prices risk destroying demand as markets are extremely tight, with EU gas storage at multi-year lows. If spot prices rise further this winter, they could erode long-term demand and trigger a 'bloodbath' in global market, Petronas CEO Tengku Muhammad Taufik warns.

Shell has awarded OceanMight an engineering, procurement and construction (EPC) contract for structures linked to gas field off Sarawak with a view to sourcing new feedgas for Malaysia’s existing processing and LNG infrastructure.

Shell – and its partners PETRONAS, PetroChina, Mitsubishi and KOGAS – have taken a final investment decision (FID) on the second phase of LNG Canada, approving a C$33 billion expansion that will double the British Columbia export terminal’s production capacity to 28 mtpa.

The project will add two liquefaction trains at the Kitimat facility, raising total capacity from 14 mtpa. Commercial operations are expected to begin in the early 2030s, Shell announced today.

FID on the second phase of LNG Canada marks a major expansion of the country’s LNG industry, with the Shell-led project being the country’s first large-scale LNG export project – positioned on the Pacific coast to supply customers in Asia.

Shell owns 40% of LNG Canada and expects to receive nearly 6 mtpa of additional LNG from Phase 2. The other partners are Malaysia’s Petronas, with a 25% stake; PetroChina, with 15%; Japan’s Mitsubishi Corporation, with 15%; and Korea Gas Corporation, with 5%.

Project partners’ approval comes as LNG producers and buyers prepare for a period of strong growth in global liquefaction capacity. New projects in North America and elsewhere are expected to add substantial supply during the late 2020s and early 2030s.

LNG Canada’s first phase comprises two trains with combined capacity of 14 mtpa. The facility began operations in 2025 and has since shipped more than 100 cargoes. Phase 2 will use existing infrastructure and site layouts designed to accommodate the additional trains. The expansion will include an additional LNG storage tank, a condensate tank and loading berth, as well as expanded utility and process systems.

To secure a stable flow of feedgas, LNG Canada partners also agreed to work with Coastal GasLink to expand the existing 670-kilometre pipeline through the addition of five compressor stations.

Petronas LNG has signed a head of agreement with Hokuriku Electric to negotiate the renewal of an LNG supply deal for up to 0.54 mtpa for a decade starting 2028. The HoA underscores Japan’s reliance on LNG for power generation.

Malaysia’s state-owned energy company Petronas has signed a long-term LNG sale and purchase agreement (SPA) with Japan’s Shizuoka Gas, covering approximately 0.84 mtpa of LNG supply starting in 2032.

Malaysia’s Petronas has taken delivery of the newbuilt LNG carrier Puteri Kedah, following delivery of a the similar-sized Puteri Johor LNGC on late May. Both vessels are owned by the joint venture companies of ‘K’ LINE.

Caturus, a Houston-based independent gas company, has secured $9.75 billion in project finance-style debt for its Commonwealth LNG, with total equity and debt commitments reaching $21.25 billion.

Japan’s largest power generator JERA has signed an LNG sales and purchase agreement with Malaysia’s Petronas to secure up to 2 mtpa of supply over 20 years starting in 2028.

Abu Dhabi's sovereign wealth fund Mubadala Energy has backed Kimmeridge’s $13 billion Commonwealth LNG project in Louisiana with equity financing, enabling the project to reach financial close.