Malaysia's state-run Petronas is in advanced talks to buy 18 liquefied natural gas (LNG) cargoes from Algeria over a three-year period, sources with knowledge of the discussions said.

The move underscores Algeria's growing shift towards higher-margin LNG sales after halving pipeline exports to Italy last year.

Petronas is readying to take delivery of 4-6 LNG cargoes per year from Algeria under the proposed deal, partly to cover supply lost from its Egyptian operations, although it was apparently not a key consideration.

The Malaysian firm buys LNG from Egypt's Idku liquefaction plant alongside Britain's BG Group and France's GDF Suez on a long-term basis.

But Egypt's decision to divert gas supplies for domestic needs has cut into LNG exports, recently forcing BG Group to buy six Nigerian make up cargoes from Italian utility Enel.

Algeria has recently sold one or two shipments to Petronas as part of single-cargo deals, trade sources said.

Africa's biggest gas producer launched a number of tenders for the supply of spot and medium-term LNG to buyers in Asia and the Atlantic Basin last summer, breaking with prior policy of committing itself to long-term deals.