Last updated on August 23, 2025
KUALA LUMPUR (Aug 14): Petroliam Nasional Bhd (Petronas) will import liquefied natural gas (LNG) — including from the US — only when necessary and commercially feasible, Prime Minister Datuk Seri Anwar Ibrahim said on Thursday.
Anwar stressed that imports would be based strictly on capacity and demand, without exceeding the nation’s needs, while Malaysia — a gas producer — will continue exporting LNG to other countries.
“If the price is competitive and the project makes commercial sense, we can import additional supplies, including from the US, if it is profitable. Our LNG products remain in demand in Japan, South Korea and China, particularly with strong demand from China,” he told Parliament during Prime Minister’s Question Time.
He was responding to Syed Saddiq Syed Abdul Rahman (Muda–Muar), who asked how Petronas could protect its profits if it committed to annual LNG purchases worth US$3.4 billion (RM14.39 billion) in addition to current imports.
The US$3.4 billion annual LNG deal with the US is part of Malaysia’s broader agreement with Washington to secure a tariff reduction to 19% from 25%.
Anwar said there is no issue with the arrangement as long as imports remain need-based and are conducted on fair commercial terms.
“We apply the same approach with other countries. The trade balance — whether in our favour or theirs — is a factor in the decision-making process,” he added.
According to Bloomberg data, Malaysia imported about 3.3 million metric tons of LNG in 2024, up from 2.1 million metric tons in 2021.
Petronas Optimising Asset Portfolio
Anwar also noted that Petronas’ asset portfolio rationalisation is guided by long-term strategy, commercial viability, and global market conditions — without political interference.
The company, he said, must maintain a balanced portfolio amid uncertainties in the global oil and gas market, which includes divesting mature upstream assets to reinvest in new opportunities. This is reflected in its presence in Brazil, where Petronas holds seven upstream blocks, three development blocks, and four exploration blocks.
“In Canada, for instance, operations are strategically important due to robust natural gas reserves of about 50 trillion cubic feet (TCF). Exports have already started, undertaken in collaboration with other major industry players,” Anwar said.
He added that continuous reassessment of upstream assets is essential, with such investment decisions left entirely to Petronas’ commercial judgement.
