Overview

Malaysia is one of the world’s LNG heavyweights, second only to Qatar in the amount it exports. The country’s exports rose by 6% year on year to 24.5 mtpa in 2013, of which 60% went to Japan, according to the BP Statistical Review of World Energy 2014. But as demand for gas in Malaysia has grown, the country has started to turn its attention to LNG imports – while still expanding its liquefaction capacity.

State-run Petronas completed the 3.8 mtpa Malacca LNG terminal in mid-2013 and approved a second facility in Johor in 2014 – and there have been talks about a third. Petronas has one 20-year supply deal with Australia’s Gladstone LNG plant for at least 2 mtpa once it starts up in 2015 or 2016, a deal for around 700,000 tpa from Statoil for three and half years , and one for 2.5 mtpa from GDF Suez – also for three and half years. Looking to secure LNG further into the future, Petronas also operates the Pacific Northwest LNG plant in Western Canada, on which it expects to make an FID in late 2014.

At the same time, Petronas is adding a ninth train at Malaysia LNG – expanding its liquefaction capacity from 25.7 mtpa to 29 mtpa by around 2016-2017. It is also building two smaller FLNG plants, which are expected online in late 2015 and late 2016. The operator, which has its own fleet of carriers, has not announced long-term supply contracts for its new capacity. Instead, it is expected to send at least part of it to Malaysia’s terminals, and possibly keep some for short-term trading.

Malaysian gas production climbed by 33% between 2003 and 2013 to 69.1 bcm – with a 4.2% increase from 2012 to 2013 alone. The country accounts for 2% of worldwide output. Consumption increased over the period by 25% to 34 bcm, although it declined from 34.7 bcm in 2012.

Page updated: 14/08/2014