Firm mulls ways to entice buyers
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) may try shorter-term liquefied natural gas (LNG) contracts and smaller cargo sizes to entice buyers, said senior officials, at a time when it has major contracts coming up for renewal and the market is awash in supply.
The LNG marketing drive at Petronas, coincides with rising production after the start-up of Train 9 at its Bintulu export terminal and its first floating LNG unit.
The global LNG market has become a buyers’ market as growth in new supplies, mainly from Australia and the United States, exceeded demand and depressed prices. Asian spot LNG prices have dropped by more than 70 per cent since 2014.
“New demand creation is becoming a norm. We have recently restructured our organisation to put a lot more focus on the Middle East and South Asia. We’ve also set up a team to cover Southeast Asia,” said vice-president of Petronas’ LNG Trading & Marketing Ahmad Adly Alias at the Asia Oil & Gas Conference.
The firm’s upstream chief executive officer Mohd Anuar Taib said it sees significant potential demand growth in India, Pakistan, Bangladesh and some parts of Southeast Asia.
In China, Petronas planned to work with a partner to sell smaller parcels to meet the demand of small buyers, said Ahmad.