Malaysia's Natural Gas Output Surges Amid Crude Oil Decline

Malaysia's natural gas production surged by 19.1% year-on-year to 763.5 billion cubic feet in the second quarter of 2026, according to the Department of Statistics Malaysia (DOSM). This significant increase was reflected in the monthly performance throughout the quarter, with June showing stronger growth than April and May.

On the other hand, crude oil and condensate production declined by 5.6% year-on-year to 42.7 million barrels compared to 43.0 million barrels in the same period last year. The decline was attributed to a contraction of 11.7% in crude oil production, which amounted to 28.6 million barrels.

However, condensate production saw an increase of 9.8% to 14.1 million barrels compared to 12.8 million barrels in the second quarter of 2025. The weighted average lifting price (WALP) for crude oil and condensate in Malaysia rose to US$114.5 per barrel in 2Q 2026 from US$84.0 per barrel in 1Q 2026, influenced by the upward trend in global WTI and Brent crude oil prices.

The exports of refined petroleum products also saw a significant increase, rising to RM38.8 billion from RM22.9 billion. Liquefied natural gas (LNG) exports reached RM16.1 billion in 2Q 2026 compared to RM12.9 billion in the preceding quarter.