Latest news with #PETRONAS
The Star
a day ago
- Business
- The Star
Tariffs, uncertainties weigh on shipping in 1H25
KUALA LUMPUR: Malaysia's shipping industry navigated cautiously in the first half of financial year 2025 (1H25), as industry players assessed market conditions and challenges, operating in a complex environment that demanded a measured and deliberate strategy. Ongoing talks between Petroliam Nasional Bhd (PETRONAS) and Petroleum Sarawak Bhd (Petros), relatively stagnant freight rates, and geopolitical tensions affecting maritime routes dominated the sector. However, it was encouraging to note that ports performed well, recording increased cargo volumes. Malaysia Shipowners' Association (Masa) chairman Mohamed Safwan Othman said while the impact of the United States reciprocal tariff rate, set to take effect on Aug 1, is minimal on industry players, the sector continues to monitor potential medium-term consequences depending on decisions made after the 90-day pause. He added that domestic activity remains slow, with close attention paid to the ongoing negotiations between PETRONAS and Petros, which had dragged on for more than two years. 'Prolonged issues have resulted in lower demand in the oil support vessel market in our domestic waters. 'However, PETRONAS and TNB Fuel Sdn Bhd have awarded long-term vessel provision and contract of affreightment contracts, respectively, this year. 'Malaysian shipowners were the majority recipients of both contracts,' he told Bernama when contacted. Mohamed Safwan said other shipping segments were broadly neutral, with freight rates remaining largely stagnant over the past six months. On geopolitical tensions affecting major maritime routes, Mohamed Safwan said apart from a few global players such as MISC Bhd , most Malaysian shipping operators are focused on the regional market, expanding east to China and west to India. 'In terms of cost, delays in key maritime routes such as the Suez Canal and the Strait of Hormuz have increased the dependence on Asean vessels operating within the region. This has led to an uptick in charter rates,' he said. He noted that South-East Asia remains relatively stable, with routing largely unaffected. However, delays are expected in the transhipment of cargo intended for Malaysian consumption. On the International Maritime Organisation (IMO) decarbonisation targets, Mohamed Safwan said Masa members are well aware of the regulations, but the shift towards decarbonisation requires significant effort and substantial funding. 'Regarding the new targets outlined in the IMO net-zero greenhouse gas emissions Strategy 2050, Masa members are currently evaluating (their) options. 'The global maritime industry continues to debate current solutions at the IMO. 'For us, Malaysian shipowners are focusing on improving efficiency within existing regulations. 'This is also because most Malaysian vessels are ageing, and any re-fleeting must consider new alternatives such as alternative fuel or dual-fuel ships,' he added. On the outlook, he said instabilities arising from geopolitical tensions had prompted industry players to capture increased demand from re-routed cargo movements. 'Key risks remain, particularly the escalating tensions between global powers closer to home, such as the rift between China and the United States, and Taiwan's position, which has heightened regional uncertainty. 'These issues affect freedom of movement and stability in South-East Asia.' Transport Minister Anthony Loke Siew Fook recently expressed hope that ongoing negotiations with the United States government, ahead of the potential imposition of a 25% tariff on Malaysia from Aug 1, would help mitigate the impact on the maritime industry and preserve its competitiveness. He said the maritime sector is currently performing well, buoyed by increased trade volumes at ports operated by MMC Corp Bhd and Westports Holdings Bhd . Maritime analyst Nazery Khalid said the sector, which facilitates the bulk of trade among Asean members and between Asean and other regions, plays a critical role. 'The goal of boosting regional connectivity and trade in South-East Asia to make it a global economic powerhouse cannot be achieved without adequate port infrastructure, efficient logistics, strong intra-and inter-regional connectivity, and robust shipping services,' he added. He also stressed the importance of a facilitative regulatory environment, investment incentives, digital and physical infrastructure, and alignment with international standards across the maritime supply chain. 'Sustainability, climate change, competition, intellectual property, consumer protection and taxation must be addressed to ensure cargo moves seamlessly, efficiently, securely and sustainably, while maintaining cost competitiveness and profitability for ports, shipping lines, logistics providers and other stakeholders,' he said.
Fibre2Fashion
2 days ago
- Business
- Fibre2Fashion
Petronas, SMJ Energy partner on Sabah LNG facility
Petroliam Nasional Berhad (PETRONAS), through its subsidiary PETRONAS LNG Sdn. Bhd. (PLSB), signed a Heads of Agreement (HoA) with SMJ Energy Sdn. Bhd (SMJ Energy) to formalise the terms for a 25% equity participation of SMJ Energy in PFLNG 3 Sdn. Bhd. Petronas, through its unit Petronas LNG Sdn Bhd, signed a Heads of Agreement with SMJ Energy for a 25 per cent equity stake in PFLNG 3 Sdn Bhd, the company developing a shore-based floating LNG facility at Sabah's Sipitang Oil & Gas Industrial Park. The deal strengthens Petronas' partnership with the Sabah government. Definitive agreements will follow the HoA. This marks a significant step forward in strengthening PETRONAS' long-standing partnership with the Sabah State Government and the responsible development of resources in the state. The agreement was signed by SMJ Energy CEO Datuk Dr. Dionysia Aloysius Kibat and PLSB CEO Shamsairi M Ibrahim, in the presence of Sabah Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor and PETRONAS President and Group CEO Tan Sri Tengku Muhammad Taufik. PFLNG 3 Sdn. Bhd. is the project company developing the upcoming shore-based floating liquefied natural gas (LNG) facility, which will be located in Sipitang Oil & Gas Industrial Park (SOGIP), Sabah. The proposed equity acquisition will be implemented via definitive agreements to be finalised following the HoA. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. ALCHEMPro News Desk (HU)
Yahoo
5 days ago
- Business
- Yahoo
Deutsche Bank Downgrades Venture Global (VG) Stock
Venture Global, Inc. (NYSE:VG) is one of the Deutsche Bank downgraded the company's stock to 'Hold' from 'Buy' with a price objective of $17, up from the prior target of $13.50, as reported by The Fly. The firm cited valuation as a factor for the downgrade, with Venture Global, Inc. (NYSE:VG)'s shares near the new price target. Furthermore, the company's longer-term valuation remains challenged by the lack of liquidity in the Title Transfer Facility curve, and its spending on the Calcasieu Pass 2 development, highlighted the firm's analyst. Aerial view of an oil & gas refinery, showcasing the scale of operations. The CP2 Project got authorization from the U.S. Department of Energy to export LNG to non-free trade agreement nations. Notably, the company has also announced that it has initiated full mobilization and started site work at its third LNG export facility, CP2 LNG. Venture Global, Inc. (NYSE:VG) expressed optimism about launching on-site work for this project, which is anticipated to deliver reliable, low-cost LNG to the world starting in 2027. Venture Global, Inc. (NYSE:VG) announced the execution of a new 20-year Sales and Purchase Agreement with PETRONAS LNG Ltd., which is a subsidiary of Malaysian state-owned oil and gas company, PETRONAS. Venture Global, Inc. (NYSE:VG) is a long-term, low-cost provider of US LNG sourced from resource-rich North American natural gas basins. Sands Capital, an investment management company, released it Q1 2025 investor letter. Here is what the fund said: 'Venture Global, Inc. (NYSE:VG) specializes in the development and operation of liquefied natural gas (LNG) export facilities along the U.S. Gulf Coast. We believe natural gas demand is likely to continue growing over the next several decades as an abundant, affordable, reliable, highly scalable, and relatively clean energy source relative to other hydrocarbons. Given the fundamental mismatch between where the world's largest and cheapest natural gas resources are located (primarily the United States and the Middle East) versus key areas of demand growth (Asia), we expect LNG demand to grow even faster while becoming increasingly critical from a global energy security perspective. Against this backdrop, we expect that Venture Global's modular approach to facility development will enable the company to capture a disproportionate share of incremental demand. Its innovative approach meaningfully compresses construction timelines, reduces capital intensity and operating costs, and, we believe, facilitates a virtuous cycle that can allow for project cash flows to be generated and reinvested much faster and more effectively than for its peers. As a result, we see a runway for Venture Global to sustain above-average growth as it profitably expands its production over the next decade.' While we acknowledge the potential of VG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
The Star
6 days ago
- Business
- The Star
Sabah to buy 25% PETRONAS ZLNG stake
The HoA was signed by SMJ Energy CEO Datuk Dr. Dionysia Aloysius Kibat (second from right) and PLSB CEO Shamsairi M Ibrahim (fifth from right), in the presence of Sabah Chief Minister Chief Minister Datuk Seri Hajiji Noor (third from right) and PETRONAS President and Group CEO Tan Sri Tengku Muhammad Taufik (fourth from right). KOTA KINABALU: The Sabah government, through SMJ Energy Sdn Bhd, has signed a head of agreement with PETRONAS LNG Sdn Bhd to acquire 25% equity stake in the US$3.1bil (RM13.17bil) nearshore floating liquefied natural gas (ZLNG) facility in Sipitang. The ZLNG, currently under construction, is expected to commence operations in the second half of 2027. Chief Minister Datuk Seri Hajiji Noor said the partnership marked another significant milestone in advancing Sabah's long-term development goals, which include promoting industrial growth, enhancing energy security, and creating new opportunities to drive the state's progress. 'Through strategic investments such as ZLNG, we will strengthen the state's economic resilience while ensuring that the benefits of Sabah's natural resources directly contribute to the well-being of our people,' he said in a statement yesterday. — Bernama
The Star
7 days ago
- Business
- The Star
Sabah secures 25% stake ZLNG facility with PETRONAS
KOTA KINABALU: Sabah acquires 25% equity in the USD3.1bil (RM13.17bil) nearshore floating liquefied natural gas (ZLNG) facility in Sipitang with the signing of the Head of Agreement (HOA) with PETRONAS at the Malaysia Petroleum Club (MPC), in Kuala Lumpur on Thursday (July 17). Chief Minister Datuk Seri Hajiji Noor stated that the partnership ensures Sabah's long-term development goals. "Through strategic investments like ZLNG, we will strengthen the state's economic resilience while ensuring that the benefits of Sabah's natural resources directly contribute to the well-being of our people," he said after witnessing the HOA signing. The ZLNG facility has a capacity of 2 million tonnes per annum (MTPA). It was under construction in Sipitang and was expected to commence operations in the second half of 2027. The State Government also announced its intention to acquire a 40% participating interest in PFLNG1 through SMJ Energy. SMJ Energy Chief Executive Officer Datuk Dr Dionysia Kibat said they are a prudent financial investor with a disciplined approach to portfolio building. 'Our entry into ZLNG is part of our strategic plan to diversify further and strengthen our position in the upstream, LNG, and petrochemical sectors,' she said.
