Malaysia LNG faces growing gas supply challenges

Pipeline problems, maturing fields, gas quality issues and territorial disputes threaten to erode Malaysia’s LNG exports

Petronas has decided to permanently shut in part of a key gas pipeline that supplies the largest LNG export project in Southeast Asia. The move will add to the challenges faced by the Malaysian NOC in sourcing additional gas needed to backfill the facility, which is being counted on to support growing regional LNG demand growth. Petronas will stop operating the KP201 section of its Sabah–Sarawak Gas Pipeline (SSGP) after a series of fires and leaks since its completion in 2014 that included a deadly explosion last November, according to CEO Muhammad Taufik. “There is a full evaluation on the options to us to either leave it in situ, with a number of de-energising and removal of hydrocarbon m