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KUALA LUMPUR, Oct 19: Petronas, currently the world’s third-largest liquefied natural gas (LNG) producer, has urged LNG producers and consumers to collaborate towards encouraging the industry’s growth and sustainability.
In a press statement, its president and group CEO Wan Zulkiflee Wan Ariffin warned that while demand for LNG has grown, there is a possibility of industry stagnation if LNG prices do not encourage necessary investments to sustain the business.
“Today, players are cancelling and delaying projects in tandem with the LNG prices. Without sufficient investments, both buyers and sellers face an uncertain future in terms of business sustainability and energy security,” he said.
Speaking to the audience of the LNG Producer-Consumer Conference 2017 in Tokyo, Japan, he added that Petronas too was forced to not proceed with its proposed LNG project in Canada due to the prolonged depressed prices and unfavourable market conditions.
Nevertheless, he acknowledged that the current market dynamics have stimulated internal efficiency improvements that have provided Petronas with better agility as an integrated end-to-end LNG player to accelerate growth once the industry is on an upturn.
Recently, Petronas celebrated its 10,000th cargo from its Bintulu LNG Complex in Malaysia, delivered to Japan on Oct 4. This further cements its reputation as a reliable LNG solution producer and supplier with an impeccable track record of not missing a single cargo.
“With deeper resource pools, we are able to invest in people, technology and innovation to provide energy solutions that go beyond just selling and delivering LNG. Through these investments, we aspire to help create a more sustainable LNG market that is able to fuel the world’s economies,” he said.
Wan Zulkiflee urged all parties to engage in early collaboration to work towards mutually favourable market conditions to encourage investments for business longevity and long-term supply stability.
“While current market dynamics are not encouraging conversations about sustainable gas pricing, it is in our interest, both as sellers and as buyers to bring this up.
“Although buyers’ considerations remain in our best interests, the current market volatility necessitates the security of demand. This is imperative for the producers to continue investing to support the upstream and LNG value chain in a timely manner,” he concluded.
The statement added, with over 30 years of experience in integrated global LNG business, Petronas is committed to meet the growing demand for clean energy required for global sustainability and climate change goals. — Bernama