Malaysia’s Petronas reports higher 2022 LNG sales, profit

Malaysian energy giant Petronas reported a rise in its 2022 liquefied natural gas (LNG) sales, while its profit doubled on the back of higher oil and gas prices.

Total LNG sales rose 4.6 percent to 34.23 million tonnes during January-December when compared to 32.74 million tonnes in 2021.

During the fourth quarter, LNG sales rose some 4.6 percent to 8.90 million tonnes.

Petronas said in its results report that gross LNG sales volume in 2022 increased by 1.49 million tonnes mainly due to “higher plant production in line with higher demand.”

405 Bintulu LNG cargoes

During 2022, Petronas delivered 405 LNG cargoes from the giant 30 mtpa Bintulu LNG export facility in Sarawak, and completed 2619 virtual pipeline system and LNG bunkering deliveries.

The Bintulu plant, which has shipped more than 12,000 LNG cargoes since it started operations back in 1983, consists of nine trains and supplies key demand centers such as Japan, South Korea, China, and Taiwan.

In October, Petronas declared force majeure on gas supply to Malaysia LNG Dua’s facility at the Bintulu LNG complex. The move followed a pipeline leak caused by soil movement.

MLNG Dua operates the second liquefaction facility as part of the complex.

The Bintulu LNG complex includes MLNG Satu, MLNG Dua, MLNG Tiga, and the most recent Train 9 which started commercial operations in 2017.

FLNG business

Besides the onshore facilities, Petronas continues to expand its FLNG business and has awarded the engineering, procurement, construction, commissioning (EPCC) contract for the nearshore floating LNG project in Sabah.

Japan’s LNG engineer JGC and South Korea’s Samsung Heavy will build the third floating LNG producer for Petronas and the unit will have capacity of 2 million tonnes of LNG per year. It is scheduled for completion in 2027.

Upon completion, the nearshore LNG plant will increase Petronas’ LNG production from floating LNG facilities from 2.7 mtpa to 4.7 mtpa.

Currently, Petronas operates two floating LNG facilities, namely the 1.2 mtpa PFLNG Satu, as well as the 1.5 mtpa PFLNG Dua, both located offshore Sabah.

Petronas said it had delivered 43 LNG cargoes from these two floating LNG producers during the January-December period.

Profit climbs

Petronas reported profit of 101.6 billion ringgit ($22.5 billion) for the full year of 2022, compared to 50.9 billion ringgit in the year before.

Revenue increased 51 percent to 375.3 billion ringgit in 2022.

Petronas said the oil and gas industry “could potentially see prices moderating in 2023 given an anticipated economic slowdown, even as it contends with prolonged market volatility.”

“In this environment, Petronas will continue to drive operational excellence in its core business, while it pursues its growth and sustainability targets,” the firm said.

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