The Borneo Post: Malaysia: Push for liquefied natural gas

As gas consumption levels reach record highs in Malaysia and across the continent, the country is positioning itself as a regional trade centre for liquefied natural gas (LNG).

With a series of capital-intensive LNG investments, Malaysia will likely see a strong increase in LNG import-export volumes for some time to come.

However, muted economic growth in China and India, and with it slowing demand, could limit the country’s ability to export its new LNG production.

Heavy gas subsidies and increasing LNG demand, which has increased from 315 billion cubic feet (cu ft) in 1990 to more than 1,260 cu ft in 2010, a compounded annual growth rate of 7.2 per cent – is expected to result in Malaysia’s consumption rate outstripping production between 2011 and 2016.

This trend may lead to a potential gas shortage beginning in 2014, signalling the need for Malaysia to expand its LNG import infrastructure. MORE