Petronas Bets on South-east Asia's LNG Appetite Amid Global Volatility

Petronas is optimistic about South-east Asia's growing appetite for liquefied natural gas (LNG) despite global volatility. The company sees its facilities' strategic location and diverse supply portfolio as key advantages.

Rosdi Ab Rahman, CEO of Petronas LNG, said: 'The beauty of these two supply points is that they are pointing towards the Asia-Pacific, towards the big LNG demand; and of course South-east Asia is part of (it).' He was referring to the company's production capabilities in East Malaysia and its 'new heartland' in Canada.

Petronas entered Canada in 2012 with the purchase of Progress Energy and acquired a 25 per cent stake in LNG Canada, a Shell-led joint venture that is Canada's first large-scale LNG project. The facility shipped its first LNG cargo to Japan last year.

The region is currently a net exporter of LNG, but it could turn into a net importer from 2032, according to industry forecasts. LNG demand in South-east Asia is expected to grow from around 49 million tons per annum (MTPA) in 2028 to 80 MTPA by 2035, with a compound annual growth rate of 10 per cent.

Petronas' key asset is its 303-hectare production facility in Bintulu, Sarawak, with a capacity of 29.3 MTPA. The company also has two floating LNG (FLNG) facilities off the coast of Sabah, with a collective LNG production capacity of 2.7 MTPA.