PETRONAS ramps up global LNG push to support China's energy transition

The Star

a day ago

A Petronas staff member walks past the PETRONAS logo at the Petronas Twin Towers following the group's financial results announcement on March 13. — AZMAN GHANI/The Star
PETRONAS, Malaysia's State-owned energy group, will accelerate the expansion of its global liquefied natural gas (LNG) portfolio to support China's growing energy needs, as the world's second-largest economy deepens efforts to shift toward cleaner fuels and strengthen energy security, said a senior executive.
In 2024, PETRONAS exported 8 million metric tons of LNG to China, accounting for about 10 percent of the country's total LNG imports for the year, according to the Kuala Lumpur-headquartered company.
In addition to ensuring long-term supply capability from its LNG complex by developing several new gas fields in Malaysia, including Timi, Kasawari and Jerun, PETRONAS will advance additional upstream projects such as the Rosmari and Marjoram fields, aimed at bolstering production capacity and meeting future demand, said Shamsairi Ibrahim, vice-president of PETRONAS' LNG marketing and trading, gas and maritime business.
"Internationally, we are broadening our supply network, particularly in North America. A key milestone will be the first LNG cargo from our joint venture in Alberta-based LNG Canada, expected by mid-2025," said Ibrahim.
Once operational, the project is expected to add 14 million metric tons per annum to PETRONAS' global LNG portfolio, significantly strengthening its export capacity and diversifying its supply base.
To better serve Chinese clients and address global LNG demand in a more sustainable way, the company is also enhancing its delivery capabilities. This includes deploying three new LNG vessels to improve shipments to Shenergy Group's Wuhaogou terminal in Shanghai and to supply inland cities along the Yangtze River via creative pipeline systems.
PETRONAS' efforts are further supported by its partnership with Tiger Gas, a Shanghai-based company with multiple investments in Malaysia, including LNG filling facilities in Bintulu. The collaboration enhances cross-border LNG infrastructure and reinforces shared commitments to clean energy development.
One of the key outcomes of this collaboration is the development of a specially designed LNG vessel capable of carrying around 600 containers. Unlike conventional LNG carriers that require deep-water ports, this vessel can navigate directly into the Yangtze River, expanding LNG accessibility across China's non-coastal regions.
Apart from LNG, the Malaysian energy group also supplies petrochemicals, crude oil and lubricants to the Chinese market. It is advancing marine LNG solutions such as bunkering services and expanding its LNG fleet with new LNG carriers.
Four of these vessels are currently under construction at Hudong-Zhonghua Shipbuilding (Group) Co Ltd, a major shipyard based in Shanghai.
Ibrahim noted that geopolitical uncertainties and rising energy security concerns have prompted many countries, including China, to prioritize domestic energy sources. This trend has introduced greater caution around long-term LNG contracts and tempered appetite for new import commitments, creating a more complex and unpredictable global LNG market.
"Despite these challenges, PETRONAS remains confident in the value of its differentiated LNG and clean energy portfolio," he said, stressing that the company believes its continued commitment to providing reliable, sustainable energy solutions aligns well with China's long-term energy transition strategy. - China Daily/ANN