Market Intelligence
Energy Malaysia Trade Policy and Agreements

Malaysia LNG Supply

Malaysia’s growing reliance on imported LNG and its long-term supply commitments present significant export and infrastructure opportunities for U.S. energy firms, particularly LNG producers and technology/service providers in liquefaction, storage, and regasification.

As part of ongoing trade negotiations with the United States, Malaysia has committed to purchasing $3.4 billion worth of U.S. liquefied natural gas (LNG) annually through its national energy company, Petroliam Nasional Berhad (PETRONAS).

Although Malaysia remains one of the world’s largest LNG exporters, the country faces rapid depletion of natural gas reserves while domestic demand continues to rise. In 2024, Malaysia imported 3.3 million metric tons of LNG, up from 2.1 million tons in 2021, indicating a growing reliance on LNG imports.

Projections indicate Malaysia could become a net importer of LNG within the next 10 to 20 years, making long-term supply security a national priority. Earlier this year, PETRONAS signed two 20-year LNG purchase agreements, each for 1 million metric tons per annum, with Louisiana-based LNG facilities.

Natural gas will become increasingly important to the national energy mix as the government has committed to phasing out all coal-fired power plants, the country’s dominant source of power generation, by 2044. Projections show that natural gas will make up as much as 56 percent of the national energy mix by 2050.

The Malaysian government is developing a National Gas Roadmap with the aim of strengthening the domestic gas value chain by increasing LNG imports. PETRONAS currently operates two floating regasification terminals for processing and supplying imported LNG to the domestic market. The need for more terminals is possible as imports increase.

The growing need for imported LNG and related infrastructure presents opportunities for U.S. exporters. If you represent a U.S. company and want to learn more about these opportunities, please contact Commercial Specialist Mohan Gurusamy at office.kualalumpur@trade.gov.