LNG EXPORTS AT 4-YEAR LOW
Leak in 500km gas pipeline from Kimanis to Bintulu is taking its toll
MALAYSIA’S exports of liquefied natural gas (LNG) fell to a four-year low last month as domestic gas pipeline issues plaguing the country since January took their toll, according to industry sources and Thomson Reuters data.
Natural gas supply from the Sabah Oil and Gas terminal to the Petronas LNG Complex in Bintulu was cut in January following a leak in the 500km pipeline, which transports gas from Kimanis in Sabah to the Bintulu plant in Sarawak for processing.
While the pipeline has been repaired, Petroliam Nasional Bhd (Petronas) is awaiting approval from authorities to resume operations, said a source.
Petronas did not comment on the pipeline issue but a spokesman said there was no disruption to cargo deliveries from the LNG complex in Bintulu, and that operations are being carried out as scheduled.
The Petronas LNG Complex, which has a capacity of 24 million tonnes per annum (mtpa), comprises three LNG plants owned and operated by Petronas and joint-venture companies.
It is supplied with gas from several facilities off Sarawak, according to the company website.
Malaysia’s LNG exports fell to about 1.5 million tonnes last month, the data showed, the lowest since July 2014 when it was about 1.43 million tonnes.
Petronas has purchased replacement cargoes to meet some of its contractual obligations to term customers, one source said, which would reduce spot exports as a result.
The drop in export volumes comes at a time when demand from Japan, the world’s biggest importer of LNG, has been robust amid sweltering heat.
“Overall, the market is quite tight in terms of supply but new supply from Australia should help going forward,” a Singaporebased trader said.
Revenue from LNG, which accounted for 3.5 per cent of Malaysia’s total exports, decreased to RM2.7 billion in June, down RM1.2 billion, or about 31 per cent, from a year ago as export volumes fell, official statistics show.