Malaysian potential for LNG top spot
The commercial intelligence specialist for the energy, metals and mining industries, Wood Mackenzie says that by 2020, Malaysia has the potential to be the largest supplier of flexible LNG to the global market, larger even than Qatar.
Wood Mackenzie said that the supply capacity of Malaysia’s PETRONAS is growing through new capacity additions in eastern Malaysia as well as Canada, offtake agreements with other suppliers and projects such as GLNG in Australia. Its supply potential could grow by over 55%, from 27m tonnes per annum in 2013 to 42m tonnes per annum in 2022.
The expert has estimated that by way of comparison, Qatar’s flexible LNG volumes in 2013 were 20m tonnes per annum.
Wood Mackenzie’s Asia gas research analyst, Chong Zhi Xin, said: “In addition to challenging Qatar, Malaysia’s growing volume of uncontracted LNG will provide strong supply competition for new LNG projects, such as from the US, Canada and East Africa.”
Whether Qatar or Malaysia will have the biggest flexible volume in 2022 will depend on their contracting strategy in the interim though.
According to Wood Mackenzie’s analysis, about 4m tonnes per annum of LNG is necessary to balance the Peninsular Malaysia market by 2022. However, PETRONAS’s management of indigenous pipe gas, both new supply and existing contracts, could enable some piped gas to be backed out in favour of LNG, allowing the company to increase Peninsular Malaysia LNG imports to as much as 8m tonnes per annum by 2022, well over what is needed.
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