Malaysian state-owned Petronas plans to develop the country's third LNG regasification terminal, the firm's chief executive Tengku Muhammad Taufik said at the Energy Asia 2025 conference in Kuala Lumpur on 17 June.
The need for the third regasification terminal in peninsular Malaysia comes on the back of expectations of rising demand, Taufik added. The plan follows a government directive to ensure energy supply security in peninsular Malaysia, according to state-controlled news agency Bernama.
There are two import terminals presently operational in the peninsular — the 3.8mn t/yr Melaka and 3.5mn t/yr Pengerang import facilities. The third terminal will likely be built in Lumut, southwest Perak, and have a nameplate capacity similar to existing terminals, Bernama reported.
Malaysia's LNG receipts have held stable in recent years, having steadily increased since the country began importing in May 2013. Imports totalled 1.04mn t over January-May, little changed from 1.06mn t a year earlier, Vortexa data show. And gas-fired power generation comprised 41pc of the power generation mix over the same period, averaging 5.7 GWh/d, up from 5.5 GWh/d a year earlier, data from electricity planning authority Single Buyer show. This indicates imported LNG makes up about 32pc of total gas used in power generation.
Malaysia is mulling becoming a net LNG importer within the next 10-20 years because of declining natural gas reserves and growing energy demand. Gas is set to account for as much as 56pc of the country's energy mix by 2050.
But Petronas continues to retain an "advantaged" position in east Malaysia to export LNG in fulfilling its contractual obligations, Taufik stated. Malaysia exports LNG through the 30mn t/yr Bintulu terminal in Sarawak alongside the 1.5mn t/yr PFLNG Satu and 1.3mn t/yr PFLNG Dua floating LNG (FLNG) units offshore Sabah.
