Petroliam Nasional Berhad (Petronas) is intensifying its efforts to establish itself as a dependable long-term liquefied natural gas (LNG) supplier to China. The Malaysian state-owned energy company is expanding both its domestic gas development initiatives and international production capabilities, as part of its strategy to ensure reliable and sustainable energy supply to one of the world’s largest LNG importers.
Speaking at the World Gas Conference 2025 in Beijing, Shamsairi Ibrahim, Vice President of Petronas LNG Marketing & Trading, Gas & Maritime Business, emphasised the company’s commitment to building a robust global production network to meet China’s rising energy demands.
“This includes the development of key domestic gas fields such as Timi, Kasawari, and Jerun, alongside continued progress at Rosmari and Marjoram. These assets are vital to ensuring long-term supply stability from our LNG complex,” said Shamsairi.
China’s LNG Imports Surge
China’s LNG imports reached approximately 77 million tonnes in 2024, representing an 8.1% increase year-on-year, driven by ongoing economic recovery and infrastructure growth. Projections indicate that imports will rise further to exceed 83 million tonnes in 2025, surpassing the record 79 million tonnes set in 2021.
Petronas currently supplies around 10% of China’s total LNG imports, exporting approximately 8 million tonnes per annum (MTPA) to the country in 2024. The company aims to strengthen this position by enhancing supply reliability in alignment with China’s dual objectives of energy security and decarbonisation.
Global Flexibility and Strategic Expansion
To enhance flexibility and resilience amid market and geopolitical volatility, Petronas is leveraging liquefaction capabilities at its Bintulu LNG Complex while expanding international operations. One of the key developments is the upcoming commencement of deliveries from LNG Canada, with the first cargo expected in mid-June 2025.
“The LNG Canada project gives us greater optionality in supplying the Asia-Pacific region, especially China, while optimising Pacific trade routes and diversifying supply sources,” noted Shamsairi.
Complementing these efforts, Petronas is investing in its LNG shipping and delivery infrastructure to support diverse market needs including marine, inland, and off-grid demand. The company has added three new LNG carriers to serve Shenergy’s Wuhaogou terminal in Shanghai and is actively rolling out its LNG Virtual Pipeline System (VPS) across the Yangtze River and inland China.
The VPS, which utilises ISO tank containers, also supports domestic clean energy access by delivering LNG to remote, off-grid areas across Peninsular Malaysia.
Decarbonisation and Fleet Modernisation
Petronas is concurrently upgrading infrastructure at the Bintulu complex, including a phased shift to green electricity from mid-2026 to replace older, less efficient gas turbines.
Offshore, the company’s Floating LNG (FLNG) assets—PFLNG Satu and PFLNG Dua—continue to demonstrate the feasibility of sustainable offshore LNG production. A third FLNG facility, currently under construction in South Korea, is scheduled for commissioning in 2027 with a capacity of 2.1 million tonnes per annum.
To future-proof its LNG logistics operations, Petronas is also investing in dual-fuel vessels and exploring next-generation shipping innovations, including liquefied CO₂ and ammonia carriers.
“Our diversified global portfolio and tailored supply strategies place us in a strong position to meet short-, medium- and long-term energy needs,” said Shamsairi. He added that while renewable energy adoption is accelerating, hydrocarbons remain integral to the global energy mix—accounting for 80% of energy supply today, with projections indicating a continued 30% share by 2050.
“Rising energy demand, particularly in the Asia-Pacific, means that hydrocarbons will remain essential in meeting baseload requirements for the foreseeable future,” he concluded.
-Bernama
