Beijing: 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.
According to BERNAMA News Agency, Petronas LNG Marketing and Trading, Gas and Maritime Business vice president Shamsairi Ibrahim stated that the company is building a global production network to provide alternative supply sources for China’s growing LNG demand. These projects include 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. These developments were highlighted in conjunction with the World Gas Conference 2025 in Beijing.
Shamsairi noted that this expansion comes as China’s LNG imports surged to around 77 million tonnes in 2024, marking an 8.1 per cent increase from the previous year, driven by economic recovery and infrastructure expansion. Projections indicate that China’s imports will exceed 83 million tonnes in 2025, which would surpass the previous record of 79 million tonnes set in 2021. Petronas remains committed to reinforcing its presence in China and improving supply reliability to support China’s dual energy goals of security and decarbonisation, with the company accounting for about 10 per cent of China’s LNG imports, exporting approximately eight million tonnes per annum to China in 2024.
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. Internationally, the company is expanding supply nodes from North America, with their first cargo from LNG Canada expected in mid-June 2025. The LNG Canada project will provide 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. Three new vessels have been added to support deliveries to Shenergy’s Wuhaogou terminal in Shanghai, alongside providing an LNG Virtual Pipeline System (VPS) for the Yangtze River and introducing LNG bunkering for marine transport. Petronas is also expanding its fleet with energy-efficient LNG carriers, with four currently under construction at the Hudong-Zhonghua shipyard in China. The VPS system, which uses ISO tank containers, delivers LNG to off-grid customers across Peninsular Malaysia, enabling cleaner energy access for remote areas lacking natural gas infrastructure.
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 the retirement of inefficient turbines. 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.
Looking ahead, Petronas 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 a diverse global portfolio and tailored offerings, Petronas is well-positioned to meet varying market needs across short-, medium-, and long-term demand. Shamsairi 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 crucial 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. Demand is driven by rapidly growing Asia-Pacific markets, where rising energy needs mean renewables alone may not meet baseload demand in the near term.