Firm mulls ways to en­tice buy­ers

New Straits Times - - Business / News -

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.

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