KUALA LUMPUR, May 7 (Bernama) — PETRONAS LNG Ltd (PLL) introduced the Canada Alberta Energy Company (AECO) index as a new LNG price indexation to its customers following the sale of a spot LNG cargo from Bintulu, Malaysia, to a buyer in Far East for August 2021 delivery.
AECO is a leading price benchmark for natural gas in Canada, similar to the United States’ Henry Hub, which is the natural gas price benchmark used as indexation to LNG price. It is transparent as the index is traded in real time, with high liquidity backed by large gas reserves.