Petronas well positioned to provide LNG to new markets

Petronas president and CEO Datuk Wan Zulkiflee Wan Ariffin does not see a reprieve from low oil prices in near future

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is well positioned to provide its liquefied natural gas (LNG) to existing and new demand markets, as well as to emerging trading hubs, through its flexible and innovative LNG solutions.

This is made possible due to the national oil company's growing portfolio of LNG supply sources in Malaysia, Australia, Egypt and soon in Canada, it said in a statement on Friday.

Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin said: “Asia, backed by its growing middle class, needs clean energy to fuel its growth, and LNG is well positioned as the most significant source of clean energy as it is abundant, environmentally-friendly and economically competitive.” 

He was speaking at a his plenary session “The new LNG markets” at the recent 19th International Conference & Exhibition on Liquefied Natural Gas (LNG 2019) in Shanghai.

“Since the first LNG cargo in 1964, global demand for LNG has grown to exceed a record of 300 mtpa for the first time in 2018, and is now forecasted to increase by another 100 mtpa in just the next four years. 

“This growth trajectory reflects the global aspirations of countries in pursuing prosperity while ensuring sustainability, hence, driving demand for clean energy,” he added.

Wan Zulkiflee said the new LNG demand would come from China’s future energy requirements, limitations in infrastructures of untapped areas in new LNG markets of the Indian subcontinent and Asean and also emerging trading hubs from developed LNG spot markets. 

However, he said these demands could only be fully served if the government and industry players would work together to co-create a sustainable market environment.

Petronas had pushed boundaries with the successful construction and operation of the first floating LNG facility, PFLNG Satu, and is on track for the delivery of its second floating facility in 2020. 

It said that it had also performed break-bulking ship-to-ship transfer and it was pursuing smaller-scale LNG solutions such as LNG bunkering and virtual pipeline systems via ISO-tanks to transport LNG.

Petronas has a total LNG production capacity of more than 34 mtpa. It was developing both traditional and emerging gas markets with its partners.