Malaysia’s Petronas acknowledges LNG supplies problems due to gas pipeline leak

TASS Russian News Agency | Oct 9, 2022 at 4:47 AM

TOKYO, October 9. /TASS/. Petronas acknowledged problems with liquefied natural gas (LNG) supplies to one of its facilities in the Petronas LNG Complex due to the leak at the Sabah-Sarawak gas pipeline, the Malaysian company said on its website.

"Petronas has declared Force Majeure (FM) on gas supply to MLNG Dua [production facility] due to a pipeline leak caused by soil movement" in the vicinity of the Sabah-Sarawak Gas Pipeline occurred on September 21, 2022," the company said.

"This has impacted the supply of gas to MLNG Dua's production facility at PETRONAS LNG Complex (PLC) in Bintulu, Sarawak," Petronas noted. Other production facilities are operating normally, the company said.

"Petronas is mindful that this incident has impacted its delivery commitments to some of its contracted Liquefied Natural Gas (LNG) buyers and it is in discussions to identify suitable mitigation efforts," the company informed. It is conducting "a comprehensive evaluation" of the pipeline to ensure its integrity and safety, the Malaysian company added.

The LNG plant located in Malaysia is among the largest LNG projects globally and has the production volume about 25.7 mln metric tons per year.