Petronas to expand LNG exports despite rising domestic demand

4 days ago

Published on: Tuesday, August 12, 2025
Published on: Tue, Aug 12, 2025
By: Bloomberg Text Size: The company plans further exploration to maintain domestic production levels after hitting peak output. (Reuters pic) Kuala Lumpur: Petroliam Nasional Bhd is seeking to expand its liquefied natural gas exports to growing Asian markets while also supporting Malaysia's rising energy needs, which are partly driven by a data-centre boom. The state-owned company's diversified portfolio – which includes a newly operational export plant in Canada – will enable it to meet overseas demand for gas, said Adif Zulkifli, chief executive officer of Petronas' gas and maritime business.
Advertisement The firm plans to expand beyond its traditional markets – Japan, China and South Korea – to countries in Southeast Asia, including Vietnam and the Philippines, he said in an interview. But the gas-producing country is also eyeing more imports because its reserves are dwindling at a time when its energy requirements are growing thanks to a proliferation of power-hungry data centres serving the artificial intelligence industry. Malaysia imported about 3.3 million metric tonnes of LNG in 2024, up from 2.1 million tonnes in 2021, according to Bloomberg's vessel-tracking data. Petronas will continue exploration for more resources to sustain its domestic production, which has already peaked, Adif said. It operates one of the world's largest LNG terminals in Bintulu on the Sarawak coast and has enough gas to fill up its plant there 'for as long as we need', he added. 'We have brought in a number of upstream projects to make sure that we are able to deliver gas and sustain that for the next 20 to 30 years,' Adif said at the company's headquarters on the 42nd floor of the Petronas Twin Towers in Kuala Lumpur on Tuesday. 'We are also gearing up to bring in more imports into Peninsular Malaysia.' Traditional gas suppliers in Asia are being forced to rethink their export strategies as they try to reconcile rapid economic growth with falling domestic reserves. Malaysia, which was the world's fifth-largest shipper of the super-chilled fuel last year, usually meets domestic demand by topping up with cargoes from Australia. Petronas CEO Muhammad Taufik said in June that Malaysia is set to be increasingly dependent on LNG imports in the next five years. In a bid to appease US President Donald Trump and secure a lower tariff from Washington in August, the Asian nation agreed that Petronas would buy US$3.4 billion of US LNG annually. Malaysia leaning into imports to support its energy needs highlights a broader trend of once hefty producers having to turn to buying the fuel from overseas. Traders are also seeing more opportunity to sell gas to traditional exporters in the future. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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Exclusive-US mulled use of Russia icebreakers for gas development ahead of summit-sources

The Star

3 hours ago

The Star

Exclusive-US mulled use of Russia icebreakers for gas development ahead of summit-sources

FILE PHOTO: A view shows the nuclear-powered icebreaker "Yakutia" during the launch ceremony at the Baltic Shipyard in Saint Petersburg, Russia November 22, 2022. REUTERS/Igor Russak/File Photo LONDON (Reuters) -The United States has had internal discussions on using Russian nuclear-powered icebreaker vessels to support the development of gas and LNG projects in Alaska as one of the possible deals to aim for when President Donald Trump meets Vladimir Putin on Friday, three sources familiar with the matter told Reuters. Trump landed in Alaska on Friday for what he called a "high stakes" summit with Russia's Putin to discuss a ceasefire deal for Ukraine and end the deadliest war in Europe since World War Two. Both the U.S. and Russian presidents, due to meet at a Cold War-era air force base in Alaska's largest city, are seeking wins from their first face-to-face talks since Trump returned to the White House. The icebreaker idea has been discussed among White House officials as one of the potential deals to try to strike with Russia at the Alaska summit, one of the sources said. The ongoing talks between the U.S. and Russia over Ukraine have included discussions about business deals. The White House is planning to continue this approach at the summit on Friday, said the source, who like the others spoke on condition of anonymity due to the sensitivity of the talks. The White House did not immediately respond to a request for comment. Kremlin officials were not available for comment. Russia operates the world's only fleet of nuclear-powered icebreakers, which play a central role in maintaining year-round shipping access along the Northern Sea Route, a strategic path for global energy and trade flows. Trump's administration is pushing to transport gas from Alaska's remote north to Asian clients. Trump has pitched Alaska LNG, a proposed $44 billion project to ship liquefied natural gas along a 800-mile pipeline from Alaska, to Asian buyers as a way to reduce their dependence on Russian LNG. Another project, similarly aimed at Asian markets, is Qilak LNG, which is targeting 4 million tons per annum of LNG. Qilak did not immediately respond to a request for comment. An industry source said that Alaska LNG had "no identified needs for Russian icebreakers." Reuters was not immediately able to establish which, if any, specific project would benefit if a deal was reached in the Alaska talks. The nuclear icebreakers could also facilitate the transport of construction materials and equipment to remote areas in Alaska, where infrastructure is limited and weather conditions are harsh. (Reporting by Marwa Rashad and Anna Hirtenstein in London; Additional reporting by Timothy Gardner in Washington and Oksana Kobzeva in Moscow; Editing by Rosalba O'Brien)

[UPDATED] Govt allocates RM3mil for Intan to become regional centre of excellence

New Straits Times

5 hours ago

New Straits Times

[UPDATED] Govt allocates RM3mil for Intan to become regional centre of excellence

PUTRAJAYA: The government has allocated RM3 million to strengthen the National Institute of Public Administration (Intan) as a centre of excellence for public service in the Asian region and globally. Prime Minister Datuk Seri Anwar Ibrahim said this includes a research and development (R&D) fund of RM1 million to enhance the capacity and capability of public officers in service delivery, particularly in new focus areas such as artificial intelligence, blockchain, and post-quantum cryptography (PQC). Another RM1 million in R&D funding will be allocated to boost Intan's capability as a reference centre in governance and best values, human capital development, organisational management, service delivery, and best practices in public–private collaboration. The remaining RM1 million will support R&D for the publication and implementation of the Intan Country Report, similar to the Organisation for Economic Cooperation and Development (OECD) and World Bank Reports, for the nation's public service. Anwar also announced that the APEL.Q @ Intan initiative, which was approved under the 2025 Budget, will continue in 2026 with an allocation of RM1.5 million.

The Star

6 hours ago

The Star

US aid cuts to Ukraine raise risk of waste and fraud, say watchdogs

WASHINGTON (Reuters) -USAID is concerned that the Trump administration's cancellation of independent aid monitoring contracts for Ukraine has increased the risk of waste, fraud and abuse, according to three U.S. watchdog agencies. "The termination of third-party monitoring contracts has further limited USAID's ability to oversee programs," the State Department, Pentagon and USAID inspectors general said in a report issued on Thursday. The U.S. Agency for International Development was the main U.S. agency that administered civilian foreign aid for more than 60 years. It is being dismantled by the Trump administration and is scheduled to be closed on September 2. The three inspectors general submit quarterly reports to Congress on their oversight of U.S. civilian support for Ukraine in its fight against Russia's full-scale invasion launched in February 2022. In January, President Donald Trump froze all U.S. foreign assistance programs pending a review of their alignment with his "America First" policies, and ordered the dismantling of USAID, which stopped disbursing funds in July. As part of this decision, billionaire Elon Musk's Department of Government Efficiency oversaw the termination of 83 percent of USAID programs, including some that supported Ukraine. The watchdogs' report said that USAID managed $30.2 billion in direct support for the Ukrainian government's budget, and provided a guarantee that secured a $20 billion loan for Kyiv. It said that in the three months ending June 31, 25 civilian aid programs for Ukraine were terminated, while 29 active programs, five under stop-work orders and four of unknown status were transferred to the State Department. The terminated programs included contracts with third parties that provided independent tracking of USAID funds to ensure that they were spent as intended and that helped "inform both current and future decision-making," it said. "USAID said that without independent monitoring, it cannot verify that programs are being implemented in line with award terms, increasing the risk of waste, fraud and abuse," the report said. This is especially true in conflict-affected areas "where there is a heightened potential for diversion of funds," it warned. (Reporting by Jonathan Landay; editing by Clelia Oziel)