Malaysia has reaffirmed its status as a leading global exporter of Liquefied Natural Gas (LNG), according to the 2024 World LNG Report released by the International Gas Union (IGU). The report, a comprehensive overview of the LNG market, underscores the increasing significance of LNG in global energy security amidst evolving market dynamics and climate imperatives.
The IGU’s report highlights Malaysia’s pivotal role in the LNG sector, ranking it as the fifth-largest exporter worldwide, following Russia, Qatar, Australia, and the United States. In 2023 alone, Malaysia exported 26.75 million metric tonnes (MT) of LNG, constituting approximately 7% of the global LNG trade.
One of Malaysia’s significant contributions to the LNG landscape is its operational capacity, notably the Kasawari gas field, which plays a crucial role in LNG-linked Carbon Capture, Utilisation, and Storage (CCUS) projects. This initiative underscores Malaysia’s commitment to mitigating emissions through innovative technologies.
Li Yalan, President of IGU, emphasised LNG’s pivotal role in supporting global energy transitions towards lower emissions while maintaining energy security. “LNG serves as a critical tool in enhancing the resilience of energy systems worldwide, crucial for mitigating risks and uncertainties,” he noted in the report.
Commenting on the report, Abdul Aziz Othman, President of the Malaysian Gas Association (MGA), highlighted the strategic importance of LNG for Malaysia’s energy security amidst ongoing global energy challenges. “The report arrives at a crucial juncture when ensuring stable and reliable energy sources is paramount. It provides invaluable insights for policymakers and stakeholders navigating Malaysia’s energy future,” he remarked.
Acknowledging the anticipated increase in gas demand, projected to rise from 43% to 56% by 2050, MGA underscored the importance of strategic planning and policy frameworks to sustainably meet future energy needs. “A fully liberalised gas market, including the power sector, is crucial to enhancing energy supply security and fostering a more efficient market environment,” Abdul Aziz added.
Moving forward, Malaysia remains poised to leverage its LNG capabilities to meet growing global demand and enhance its position as a key player in the LNG market. The government and industry stakeholders are encouraged to collaborate on robust policies and investments to secure Malaysia’s energy future effectively.
The IGU’s World LNG Report 2024 provides a roadmap for Malaysia to navigate its energy transition while maintaining its leadership in the global LNG sector, ensuring a sustainable and resilient energy landscape for years to come.
