SINGAPORE: Malaysia’s demand for gas and liquefied natural gas (LNG) will be soft over the next five years, energy consultancy Wood Mackenzie (Woodmac) said in a note on Tuesday.
Gas demand growth in Malaysia will be limited due to the share of gas in the country’s power generation declining to 27% in 2020 from 39% currently, losing out to coal, said Woodmac.
Progress on the so-called Refinery and Petrochemical Integrated Development (Rapid) downstream projects in Pengerang, comprising new gas-fired combined cycle gas turbines (CCGT), an oil refinery and a petrochemical complex will maintain overall gas demand at between 2,500 million standard cubic feet per day (mmcfd) and 2,800 mmcfd over the next 5 years, according to Woodmac.
LNG demand will remain below 3 million tonnes per annum (mmtpa) until 2020, the consultancy said.
From 2023 onwards, as piped gas supply declines, LNG demand is expected to outstrip existing import contracts, creating space for more LNG to supply the market.