Well Positioned to Meet Rising LNG Demand: Petronas

Malaysian state Petronas is well-positioned to supply LNG to existing and new markets, as well as to emerging trading hubs, CEO Tan Sri Wan Zulkiflee Wan Ariffin told LNG2019 which was held in Shanghai last week. 

“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 said. 

Petronas has LNG supply sources in Malaysia, Australia, Egypt and will soon have one in Canada. Last year, Shell took the decision to build LNG Canada, in which Petronas has a 25% stake.

“Since the first LNG cargo in 1964, global demand for LNG has grown to exceed a record of 300mn mt/yr for the first time in 2018, and is now forecasted to increase by another 100mn mt/yr 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. 

Ariffin said that new LNG demand landscape will come from China’s future energy requirements, limitations in infrastructures of untapped areas in new LNG markets of the Indian subcontinent and ASEAN, as well as emerging trading hubs from developed LNG spot markets. However, he said these demands can only be fully served if there are concerted efforts from both government and industry players in co-creating a sustainable market environment.

He also said that Petronas’ second floating LNG facility will be operational in 2020. In addition, Petronas has also performed break-bulking ship-to-ship transfer and is pursuing smaller-scale LNG solutions such as LNG bunkering and Virtual Pipeline Systems via ISO-tanks to transport LNG, he said.