Twin tale: Coal takes centre stage in Malaysia as gas and LNG flatline

Straddling two geographical regions, Malaysia’s natural gas and LNG story also has two sides. As an LNG supplier, the south-east Asian country is set to remain a top player for the foreseeable future. However, with no new liquefaction capacity planned, continued upstream investment will be required to ensure it has sufficient gas available to maintain exports for as long as possible.

As a consumer of gas and LNG, Peninsular Malaysia – its core demand centre and home to 80% of the country’s population – has much in common with other south-east Asian countries. Depleting gas reserves offshore Peninsular Malaysia have turned the government to coal to meet its growing power demand. This has resulted in flatlined gas consumption, despite the region now being served by two regas terminals.