Petronas Will Only Import Lng From Us At Competitive Prices Says Anwar

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The prime minister says imports must also be in line with Malaysia’s actual needs.Reports previously said Malaysia had agreed that Petronas would buy US$3.4 billion of US LNG annually as part of a deal with Washington to cut its tariff rate. (Reuters pic)KUALA LUMPUR: Petronas will only proceed with liquefied natural gas (LNG) imports from the US if they are competitively priced and match Malaysia’s actual needs, Prime Minister Anwar Ibrahim said today
“We only import what we need, and among the countries we now import from is the US, anyway,” he told the Dewan Rakyat today.
“Petronas will not exceed capacity or actual national needs… if the price is competitive.”
He also said that Malaysia remained a significant LNG exporter to Japan, South Korea and China, and would manage its import-export balance carefully to avoid overdependence on any single supplier.
The prime minister was responding to Syed Saddiq Syed Abdul Rahman (Muda-Muar), who asked how the national oil company could protect its profits if it made annual LNG purchases worth US$3.4 billion (RM14.39 billion), on top of current imports.
The purchases are part of Malaysia’s deal with Washington to cut its tariff rate, but come as Petronas faces various challenges including dwindling profits leading to a decision to cut about 10% of its workforce, as well as the handover of Sarawak’s gas distribution role to state-owned Petros.
Petronas president and group CEO Tengku Muhammad Taufik said in June that Malaysia was set to be increasingly dependent on LNG imports in the next five years.
Analysts have warned that profits could be hit by the handover of Sarawak’s gas distribution role to Petros, part of the state’s push for greater control over its energy resources.
CreditSights estimates that Petronas’s earnings could fall by up to 11%, although LNG revenues are expected to hold steady.
However, Emir Research warned of a revenue loss of up to 30% if the shift significantly reshaped Petronas’s Sarawak operations, potentially forcing plans to downsize and limiting future capital spending. - FMT

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