LNG is composed almost exclusively of methane. Weighing about 45% of that of water, it floats on water. The natural gas is odorless, non-corrosive, colorless, and non-toxic. LNG occupies approximately 1/600th the volume of natural gas, and liquefaction enables natural gas to be transported economically by ship to international markets
LNG in Malaysia mainly comprises natural gas, derived from the off-shore of Sarawak and then sold to other power and gas companies located in countries such as Japan, South Korea, Taiwan, and China. With an overall LNG capacity of nearly 25.7 million tons per annum, Malaysia’s LNG plant is considered the largest LNG production site ever across the world. In addition, LNG in Malaysia accounted for 13% of Japan’s total LNG imports, the second-largest supplier to the country in the year 2018.
Since LNG is highly flammable and major exporting takes place by the sea, several regulations must be followed by industry players. Key regulatory authorities that govern the LNG market in the country are Malaysia’s Energy Commission, Petroleum Development Act 1974, and Ministry of International Trade and Industry (MITI). Hence, these factors are associated with the LNG market growth in Malaysia.
Key LNG companies in Malaysia are Petroliam Nasional Bhd (Petronas), Shell BV, Mitsubishi Corporation, and others.