Page 8 - AsianOil Week 31 2022

AsianOil SOUTHEAST ASIA AsianOil

Malaysian energy

exports on the up

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

P8 www. NEWSBASE .com Week 31 05•August•2022