Page 10 - GLNG Week 31 2022

GLNG ASIA GLNG

Malaysian energy

exports on the up

EXPORTS WITH Asian energy news headlines more often will have on crude oil and LNG shipping in the
than not focused on the big three in the region, region.
China, India and Japan, Malaysian moves in On August 2, hours after Nancy Pelosi,
crude and LNG export circles can go unnoticed. Speaker in the US House of Representatives,
But with both crude and LNG export values touched down in Taipei, Chinese officials con-
from Kuala Lumpur soaring of late, the nation of firmed military exercises in waters surrounding
33mn is starting to come to the fore in Southeast Taiwan that will run until this week.
Asia, and increasingly so across the wider region. While ongoing, it is thought that one of the
June alone saw LNG exports from Malaysia world’s busiest shipping lanes – the Taiwan Strait
150% up on a year earlier in real value terms. – will be closed to all but military vessels.
Crude oil, too, from the peninsular coun- This will not only affect Taiwan, itself Malay-
try has also posted impressive figures, with the sia’s fifth largest LNG importer; it will also serve
overall value of exports 80% higher than in June, as an unofficial blockade of the island.
2021. As such, if enacted by the People’s Liberation
Whether this trend will continue is at present Army Naval forces (PLAN), without exception,
open to speculation. crude and LNG tankers from Malaysia and else-
Of note is the International Monetary Fund where heading to Taiwan or ports on China’s
(IMF) again projecting that Malaysia and the eastern seaboard, as well as South Korea, will
other four leading ASEAN economies will see a have to take longer, more expensive routes.
collective 5.3% expansion in their economies by News of China’s intent, coincidental or oth-
the end of 2022. erwise, was preceded by Malaysia’s state-owned
Backing the IMF’s projection is the recently Petronas cutting its July 2022 official selling price
increased dollar value of the nation’s expanding (OSP) on domestic crude to $124.30 per barrel.
energy exports. A month earlier this figure had stood at
Of significant concern for analysts in Kuala $132.50.
Lumpur in recent days, though, is China. “OSPs of other Malaysian grades for July (are)
With Beijing having seen its own economy Cendor at $125.40 per barrel, Tapis Blend at
grow by just 0.4% in the second quarter, weaker $119.59 per barrel, Dulang at $127.32 per barrel
demand for Malaysian energy exports is a possi- [and] Bintulu at $122.28 per barrel,” a statement
bility in the third and fourth quarters. from the energy giant said.
In 2020, Malaysia was the world’s fourth big- In comparison, the popular benchmark Brent
gest exporter of LNG, worth $7.3bn. crude oil price hovered around $120 throughout
The same year, Japan, Kuala Lumpur’s lead- June.
ing customer, imported $3.48bn, with China Building on its recent boom in exports, Pet-
and South Korea making up the top three and ronas also highlighted possible future moves
importing $1.57bn and $1.56bn respectively. to expand further, presumably in wake of Chi-
A drop in the global LNG export rankings to nese-Taiwanese tensions easing.
fifth last year, though, has not dampened Malay- “With onshore prospects in Canada, explora-
sia’s LNG ambitions. tion in South America and deepwater drilling in
At present, however, much of East Asia, Brunei, we are venturing into a broad portfolio
including Malaysia’s top three LNG importers, of reserves and play types, applying innovative
is fully focused on events earlier in the week in technology and developing niche technical solu-
Taiwan, and knock-on effects Chinese govern- tions to maximise our hydrocarbon potential,”
ment posturing over the self-governing island the company said on its website. ™

P10 www. NEWSBASE .com Week 31 05•August•2022