Malaysia’s LNG exports in May set to see a decline

SINGAPORE: Malaysia’s exports of liquefied natural gas (LNG) are set to drop to their lowest since mid-2018.

This comes on the heels of producers globally being pressured to cut production amid record low spot prices of the superchilled fuel, trade and shipping sources said.

Lockdowns to slow the coronavirus pandemic are pummelling gas demand worldwide.

The restrictions are pushing Asia’s spot prices to record lows and forcing some suppliers to start cutting output.

Malaysia, the world’s fourth-largest LNG exporter, is set to ship out about 1.5 million to 1.64 million tonnes of the fuel in May.

This is the lowest since June-july 2018, shiptracking data from Refinitiv and Kpler showed.

About 1.92 million tonnes were exported in April, data from Refinitiv showed.

Malaysia’s main LNG exporter, stateowned Petroliam Nasional Bhd (Petronas), has cut its shipments of spot cargoes, said three industry sources who sought anonymity because they were not authorised to speak to media.

The oil and gas producer is now exporting about one to two spot cargoes.

This is down from about five to 10 during the summer months in previous years, one of the sources said.

The source added that the reduction was due to a production cut.

Petronas did not immediately reply to a Reuters’ request for comment.

The company will still meet its term commitments for now, two sources said.

Despite the production cut and cancellation of up to 45 cargoes from the United States for July loading, Asian spot LNG prices for the month are still hovering near a record low. — Reuters