Petronas Urges Partnership During LNG Glut

Malaysian state-owned Petronas urged producers and consumers of LNG on October 18 to work together to foster the sector’s long-term growth and sustainability.

Its CEO Wan Zulkiflee bin Wan Ariffin (pictured below) told this week's LNG Producer-Consumer conference in Tokyo that, while LNG demand has grown, there is a possibility of industry stagnation if LNG prices do not encourage the necessary investments to sustain the business.

He acknowledged that in July Petronas had pulled out of its proposed LNG project in Canada owing to the “prolonged depressed prices and unfavourable market conditions” but added also that current market dynamics had stimulated internal efficiency improvements, also within Petronas – which has since offered upstream western Canadian gas assets for sale.

Petronas recently celebrated its 10,000th cargo from its Bintulu LNG Complex in Malaysia, delivered to Japan on October 4, he said, further cementing its “sterling reputation as a reliable LNG solution producer and supplier with an impeccable track record of not missing a single cargo.” Petronas has over 30 years’ experience as an LNG exporter, and states that it is the world's third-largest LNG producer.

This week, Petronas LNG, Hongkong Shanghai Manjala Power and Bangladeshi company Global LNG signed a heads of agreement with state-owned Petrobangla to build what looks set to become Bangladesh’s third LNG import project, to be located at Cox’s Bazar not far from the Myanmar border.

Petronas CEO Wan Zulkiflee bin Wan Ariffin (Photo credit: the company)

Mark Smedley