Malaysian oil and gas company Petronas is looking to expand its liquefied natural gas (LNG) exports to new Asian markets in an effort to meet growing demand, reported Bloomberg.
The company is targeting countries including Vietnam and the Philippines, moving beyond traditional markets such as Japan, China and South Korea.
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The expansion comes as Malaysia’s energy needs rise, partly due to a data centre boom.
Adif Zulkifli, CEO of Petronas’ gas and maritime business, told the publication in an interview that the company’s portfolio, including a new export plant in Canada, will help meet overseas gas demand.
Petronas plans to continue exploring resources to sustain domestic production, which has peaked.
It operates one of the world’s largest LNG terminals in Bintulu, Sarawak, and has sufficient gas to maintain operations there “for as long as we need”, said Zulkifli.
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By GlobalDataMalaysia often tops up domestic demand with cargoes from Australia.
Petronas currently supplies around 2.3 billion cubic feet of natural gas to Peninsular Malaysia.
Group CEO Muhammad Taufik noted in June that Malaysia will increasingly depend on LNG imports over the next five years.
In a strategic move, the country agreed to purchase $3.4bn (RM14.39bn) of US LNG annually to secure a lower tariff from Washington.
It reflects a trend where traditional producers are turning to imports to support energy needs.
Traders see growing opportunities to sell gas to traditional exporters, the report said.
Petronas recently formalised an equity participation agreement with SMJ Energy through its subsidiary Petronas LNG.
The deal grants SMJ Energy a 25% equity share in PFLNG 3, a project company involved in the ZLNG project at Sipitang Oil & Gas Industrial Park.
In June, Eni and Petronas signed a framework agreement to create a new company managing their combined assets in Malaysia and Indonesia.
The joint venture, with equal 50:50 ownership, was established after asset-level valuations.
