Petronas Gambles On LNG

摘要

BMI View: Petronas' plan to expand its domestic LNG production capacity is indicative of a shift towards LNG within its portfolio as it seeks to capture the opportunities afforded by expected growth in the global LNG market. Its limitations lie in the availability of gas to feed its LNG plants, though results from exploration appear to be supportive of this domestic expansion. Malaysia LNG Group (MLNG), the liquefied natural gas (LNG) subsidiary of Malaysia's national oil company (NOC) Petronas, is looking to increase its production of LNG over the next five years. According to MLNG's chief executive officer Zakaria Kasah, the firm will pump MYR15bn (US$4.93bn) into more than 10 capital projects in Bintulu, Sarawak, in order to meet this target. Much of this increase will be targeted at the export market and Petronas hopes additional production will help raise the state's revenue stream from LNG sales, which currently accounts for about 4.2% of Malaysia's GDP.