In a statement today, its president/group chief executive officer, Wan Zulkiflee Wan Ariffin, said that while demand for LNG has grown, there was a possibility of industry stagnation if LNG prices did not encourage necessary investments to sustain the business.
“Today, players are cancelling and delaying projects in tandem with the LNG prices.
“Without sufficient investments, both buyers and sellers face an uncertain future in terms of business sustainability and energy security,” he said.
Wan Zulkiflee said this at the LNG Producer-Consumer Conference 2017 in Tokyo, Japan.
He said Petronas was also forced not proceed with its proposed LNG project in Canada due to the prolonged depressed prices and unfavourable market conditions.
Nevertheless, he said, the current market dynamics had stimulated internal efficiency improvements that had provided Petronas with better agility as an integrated end-to-end LNG player to accelerate growth once the industry is on an upturn.
Recently, Petronas celebrated its 10,000th cargo from its Bintulu LNG Complex in Malaysia, delivered to Japan on Oct 4, he said.
He said this further cemented the company’s sterling reputation as a reliable LNG solution producer and supplier with an impeccable track record of not missing a single cargo.
Wan Zulkiflee said with deeper resource pools, Petronas was able to invest in people, technology and innovation to provide energy solutions that go beyond just selling and delivering LNG.
“Through these investments, we aspire to help create a more sustainable LNG market that is able to fuel the world’s economies,” he said.
Wan Zulkiflee urged all parties to engage in early collaboration to work towards mutually-favourable market conditions to encourage investments for business longevity and long-term supply stability.
“While current market dynamics are not encouraging conversations about sustainable gas pricing, it is in our interest, both as sellers and as buyers to bring this up.
“Although buyers’ considerations remain in our best interests, the current market volatility necessitates the security of demand.
“This is imperative for the producers to continue investing to support the upstream and LNG value chain in a timely manner,” he said.
He said with over 30 years of experience in integrated global LNG business, Petronas was committed to meet the growing demand for clean energy required for global sustainability and climate change goals. – Bernama