Malaysia’s national oil company Petronas aims at restarting a gas pipeline currently under force majeure by the first quarter of 2024. Force majeure was declared in October 2022 due to a pipeline leak caused by soil movement at its Sabah-Sarawak Gas Pipeline. The company wants to complete an investigation into the gas supply disruption by mid-2023.
The company aims to complete an investigation into the gas supply disruption by mid-2023. The disruption raised concerns related to supply shortages to customers, including Japanese utilities which have long-term supply contracts. Japan ranks as Malaysia’s top client, importing 12 million tons of liquefied natural gas (LNG) in 2022, up 19% from 2021.
Petronas also wants to secure more supplies from Canada to Japan. Importantly, Petronas has a 25% equity stake in the LNG Canada project in Kitimat, British Columbia. The first phase of the project, set to be Canada’s first LNG export terminal, is expected to begin shipments around 2025.
Petronas is also working on another project in Argentina with state firm YPF, under which LNG supplies from there could go to markets like Europe and Asia. The companies expect to decide in 2024 on whether to invest in the first phase of the USD 60 billion project.
(Sources: Reuters; Channel NewsAsia)
