Malaysia is an LNG exporting heavyweight, supplying an estimated 6.6% of the world’s volumes in 2020. But state-owned gas firm Petronas is finding itself with uncommitted volumes, as long-term contracts expire and are not renewed, or are renewed in smaller quantities. Wishing to attract more buyers, especially from China, Petronas says it is now conducting deals that go beyond traditional LNG arrangements and include “a modern approach” to delivering cargoes that enables greater access to LNG.
At home, Petronas is pushing its new small-scale LNG business. On land this involves supplying off-grid customers in Peninsular Malaysia via trucks. At sea, it is determined to lead the way in the regional growth of LNG as marine fuel, and last year it carried out south-east Asia’s first ever fuelling operation with a purpose-built LNG bunkering vessel (LBV). Petronas’ small-scale drive not only aims to open new outlets for LNG in its domestic market and the region’s seaways, but also encourage consumers to move away from oil and coal.