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Project Insights

Malaysia faces LNG oversupply problem

Malaysia is facing an oversupply of gas as it brings new LNG export projects online and has delayed additional export capacity to help balance the market Malaysia is facing an oversupply of gas as it brings new LNG export projects online and has delayed additional export capacity to help balance the market.
By Andrew Walker 13 January 2017 Asia Pacific / LNG 0 23495
Malaysia’s uncontracted LNG supply is forecast to hit 17 mtpa over the next decade. (Petronas)

Malaysia’s LNG export capacity is set to rise by 4.8 mtpa in 2017 following the startup of a ninth train at the Malaysia LNG (MLNG) plant and Petronas’s new floating liquefaction facility (PFLNG), but analysts say the country could struggle to find markets for all this new gas.

The country’s uncontracted LNG supply is forecast to increase to 17 mtpa over the next decade, according to Edi Saputra, a specialist in Southeast Asian gas and power at energy research company