Petronas Ramps Up LNG Production to Meet China’s Demand

Petroliam Nasional Bhd (Petronas) is accelerating efforts to strengthen its position as a reliable long-term liquefied natural gas (LNG) partner to China by expanding domestic gas development and its global production portfolio, aimed at ensuring consistent and sustainable energy supply for one of the world’s largest LNG importers.

Petronas LNG Marketing & Trading, Gas & Maritime Business vice president Shamsairi Ibrahim said that the company was building a global production network to provide alternative supply sources for China’s growing LNG demand.

Addressing the delegates at the World Gas Conference in Beijing, Shamsairi said that these projects included new domestic gas fields such as Timi, Kasawari and Jerun, while continuing development of Rosmari and Marjoram to ensure long-term supply from their LNG complex.

Shamsairi made these remarks as China’s LNG imports surged to around 77 million tonnes in 2024, up 8.1% from the previous year, driven by economic recovery and infrastructure expansion. Looking ahead, China’s imports are expected to exceed 83 million tonnes in 2025, surpassing the previous record of 79 million tonnes set in 2021.

He said that Petronas remains committed to reinforcing its presence in China and improving supply reliability in support of China’s dual energy goals, security and decarbonisation. Internationally, Petronas was expanding supply nodes from North America, especially with the first cargo from LNG Canada expected in mid-June 2025, he said.

Petronas exported about eight million tonnes per annum (MTPA) to China in 2024 and accounted for around 10% of China’s LNG imports, according to a report by Malaysian National News Agency Bernama.

Leveraging LNG capabilities

As part of its long-term strategy, Petronas is leveraging its liquefaction capabilities at the Petronas LNG Complex in Bintulu while expanding international projects to increase supply flexibility and resilience against market and geopolitical shifts.

The LNG Canada project will offer Petronas more flexibility in supplying the Asia-Pacific region, including China, while optimising Pacific routes and reducing reliance on any single source.

Beyond upstream and liquefaction, Petronas is enhancing its LNG shipping and delivery infrastructure to meet evolving demands, including marine, inland and off-grid applications.

“We have added three new vessels to support deliveries to Shenergy’s Wuhaogou terminal in Shanghai. We are also providing an LNG Virtual Pipeline System (VPS) for the Yangtze River and introducing LNG bunkering for marine transport,” the report, quoting Shamsairi, said.

Petronas is also expanding its fleet with energy-efficient LNG carriers, with four currently under construction at the Hudong-Zhonghua shipyard in China.

At the Bintulu complex, Petronas is upgrading infrastructure by electrifying plants and phasing out older, less efficient gas turbines. From mid-2026, the Petronas LNG Complex will gradually be powered by green electricity, allowing them to retire inefficient turbines, he said.

Offshore, Petronas’ Floating LNG (FLNG) facilities – PFLNG Satu and PFLNG Dua – demonstrate sustainable production capabilities, enabling offshore LNG output without large-scale land development.

A third FLNG unit is under construction in South Korea and is expected to be commissioned in 2027, with a design capacity of 2.1 million tonnes per year, he said.

Investing In Dual-fuel Vessels

Looking ahead, Petronas also plans to invest in dual-fuel vessels and explore innovations such as liquefied CO₂ and ammonia carriers in anticipation of future energy transport demands.

“With our diverse global portfolio and tailored offerings, Petronas is well-positioned to meet varying market needs across short-, medium- and long-term demand,” Shamsairi said.

He advocates a balanced market strategy, combining long-term contracts for stability with short-term agreements to handle demand fluctuations, noting a gradual shift in supply terms over the years.

“Despite growing demand for renewables, hydrocarbons still play a key role in meeting global energy needs, accounting for 80 per cent today and projected to provide about 30 per cent of supply even by 2050,” he added.