Overview

Brunei is the fourth-largest gas producer in Southeast Asia, and the world’s 10th largest LNG exporter, according to the International Gas Union. For a small country it has large oil and gas reserves found both onshore and offshore. With no nearby market for its sizeable gas production, the country adopted the nascent gas liquefaction technology – the first to do so in Southeast Asia. The Brunei LNG terminal delivered its first cargo in 1973.

Brunei relies on a few large fields to provide the bulk of its production, these are reaching maturity and production from these fields is set to decline. The government has set targets to increase hydrocarbon production and is encouraging exploration activities, opening concession areas to IOCs. It is also encouraging enhanced recovery practices for the maturing fields.

Brunei consumes considerable volumes of gas considering its small population. Gas is used for electricity generation and supplied to residences. The country has a growing population and energy consumption is expected to increase. LNG has become the country’s major source of export revenue and the government is keen that domestic consumption will not eat into export capacity. In response the government has introduced policies to improve energy efficiency and reduce profligate consumption.

Page updated: 09/04/2013