Malaysia turns to LNG imports

PETRONAS' agreement to buy liquefied natural gas (LNG) from Australia puts Malaysia in the unusual position of preparing to import gas, while remaining one of the world's biggest LNG exporters

Gladstone LNG (GLNG), the Santos-led venture in Queensland, eastern Australia, has signed an agreement to supply 2m tonnes a year (t/y) of LNG to Petronas for 20 years, starting in 2014. The Malaysian national oil company, which holds a 40% stake in the venture, also has an option for an additional 1m t/y. The gas would supply the domestic market and would require the construction of the country's first regasification facility. Exports from Malaysia's eight-train Bintulu plant at Sarawak, on the island of Borneo, reached a record 22.87m tonnes in 2008, slightly up from 22.67m in the previous year, according to central bank figures. The plant is fuelled by proved domestic gas reserves of arou