Petronas to commission new Sabah LNG plant mid next year
Petronas expects to commission its new Sabah LNG plant around the middle of next year, adding liquefaction capacity as it targets rising Asian demand. The company says it is well positioned to capture future growth in Asian LNG demand, supported by its diversified supply portfolio and expanding production capacity in Malaysia.
Petronas LNG Marketing and Trading vice-president Ezran Mahadzir said the integrated portfolio comprises established operations in Bintulu, Sarawak, supplies from Canada and the upcoming Sabah facility, which he said would provide the flexibility and reliability sought by Asian buyers. He said the breadth of that portfolio would allow Petronas to cater to Asian markets with differing levels of maturity and energy requirements.
Ezran said LNG demand in mature markets such as Japan and South Korea could be relatively saturated, but the fuel would remain important as those countries expand data centres and seek to reduce their reliance on coal. In Southeast Asia, LNG demand is expected to rise, although the region faces greater challenges in developing the infrastructure needed to support growth, he said.
He said Petronas' experience as an integrated energy company, including building and operating LNG liquefaction and regasification facilities, enabled it to support partners across the LNG value chain.
On prices, Ezran said the fundamental drivers over the longer term remained demand and supply, while short-term movements could be triggered by geopolitical developments and uncertainty. He cited the conflict involving Iran as an example of how uncertainty could cause short-term price movements. Petronas took a long-term view when making investment decisions and believed its diversified portfolio, locations and supply sources would enable it to manage short-term volatility.
Ezran said Petronas' scenario planning continued to indicate that gas and energy would remain part of the global energy mix over the long term, and that the fundamentals were strong enough to further invest in capacity.