Malaysia’s Petronas set to tap Qatar for natural gas as local reserves dwindle

Malaysia’s state-owned firm Petronas is set to sign a liquefied natural gas supply deal with QatarEnergy as the Southeast Asian nation seeks more supplies of the super-chilled fuel, according to two sources familiar with the matter.Petroliam Nasional, or Petronas, will sign a contract for up to 2 million tonnes (2.2 million tons) per annum of LNG, one of the sources said.Qatar is the world’s second-largest LNG exporter after the United States, shipping out 81.07 million tonnes of the fuel last year, according to Kpler data.Its massive North Field expansion project will produce its first LNG in the second half of 2026. When at full production, the project is expected to produce 126 million tonnes of LNG per annum by 2027, boosting QatarEnergy’s output by some 85 per cent from its current 77 million tonnes per annum.Petronas is up against dwindling domestic gas reserves while local demand for the fuel rises, prompting it to actively pursue new gas opportunities abroad and form partnerships with other energy firms while seeking new long-term LNG import deals.The firm said last year it was working to get a third regasification plant up and running in Malaysia.In recent years, Petronas has signed LNG import deals with Woodside Energy, Commonwealth LNG, Venture Global and Adnoc.