Expanding LNG Exports to Meet Asian Demand
Petroliam Nasional Bhd (PETRONAS) is actively seeking to expand its liquefied natural gas (LNG) exports to growing markets across Asia. This ambitious strategy is being made possible by the company’s diversified portfolio, which now includes a newly operational export plant in Canada. Datuk Adif Zulkifli, the chief executive officer of PETRONAS’s gas and maritime business, confirmed that the company’s goal is to move beyond its traditional markets in Japan, China, and South Korea to also include key Southeast Asian nations such as Vietnam and the Philippines. This strategic pivot aims to capture new opportunities and strengthen PETRONAS’s position as a global energy supplier, leveraging its extensive assets to meet the rising demand for gas throughout the region while navigating the complex realities of its own domestic energy landscape.
Rising Domestic Needs Force a Strategic Rethink
Despite its strong export ambitions, Malaysia’s domestic energy needs are growing rapidly, forcing PETRONAS to rethink its long-term strategy. The country’s gas reserves are dwindling at the same time a proliferation of power-hungry data centers—serving the booming artificial intelligence industry—is driving up energy requirements. This has led Malaysia to increase its reliance on imports, with Bloomberg’s data showing a jump from 2.1 million metric tons of LNG in 2021 to 3.3 million tons in 2024. Adif Zulkifli noted that while PETRONAS continues its exploration efforts, domestic production has already peaked. The company is now actively working to bring in more imports to Peninsular Malaysia to ensure a stable supply for its operations, including its massive LNG terminal in Bintulu, for the next 20 to 30 years.
Shifting Global Market Dynamics and Import Agreements
Malaysia’s situation is emblematic of a broader trend in the global energy market, where once-major gas producers are increasingly being forced to become importers. As traditional suppliers in Asia struggle to reconcile rapid economic growth with falling domestic reserves, they are turning to overseas markets for fuel. PETRONAS CEO Tan Sri Tengku Muhammad Taufik Tengku Kamadjaja Aziz revealed that Malaysia is projected to become increasingly dependent on LNG imports over the next five years. This shift is already in motion, as evidenced by a recent deal with the United States. In a bid to secure a lower tariff from the Trump administration, the country agreed that PETRONAS would purchase $3.4 billion worth of US LNG annually, highlighting how geopolitical and domestic pressures are reshaping global energy trade flows.
