Malaysia’s Petronas continues to provide energy to China as country diversifies imports
Published: Jun 22, 2022 10:19 PM Updated: Jun 22, 2022 10:10 PM
The CESI Lianyungang carrying 69,000 tons of LNG berths at Tianjin LNG terminal on December 29, 2021. Photo: CNSphoto
The CESI Lianyungang carrying 69,000 tons of LNG berths at Tianjin LNG terminal on December 29, 2021. Photo: CNSphoto

Malaysia's state-owned oil and gas giant Petronas said that it will continue to provide flexible solutions to meet the rapidly growing clean energy needs of its Chinese partners.

The remarks came at a recent media event where the company reaffirmed its commitment to being a key energy provider in the nation's transformation of its energy mix towards a lower carbon future, which is also in line with China's dual carbon goals of achieving peak carbon dioxide emissions by 2030 and carbon neutrality by 2060. 

To date, leveraging on the Group's position as the closest supply node, Petronas has helped power China's economy for decades by supplying liquefied natural gas (LNG), crude oil, petrochemicals and lubricants to China.

In the natural gas space, it has grown to become the fourth largest LNG supplier to China with over 1,100 shipments delivered to date, since the first LNG shipment arrived in Shanghai in 2009. In 2021, it delivered 8.2 million tons of LNG to China, becoming a reliable supply of clean energy for businesses across the country. 

With natural gas identified as the key transition fuel for China's carbon neutrality target, it is also the first energy company to deliver Carbon Neutral LNG shipments to Shanghai, with three CN LNG shipments delivered in 2021. 

Additionally, it has commenced large-scale delivery of LNG in ISO Tanks to inland China. This unconventional approach of delivering LNG is expected to spur adoption of LNG by smaller industries located along China's inland riverways.

Petronas entered the Chinese market in 2003, currently it has five offices including in Beijing, Shanghai, and Guangzhou.

China's natural gas output totaled 56.9 billion cubic meters during the first three months of 2022, up 6.6 percent from a year ago, according to the National Bureau of Statistics.

In March alone, China reported 19.7 billion cubic meters of natural gas production, up 6.3 percent year on year. During the first quarter of the year, China imported a total of 27.82 million tons of natural gas, down 5.1 percent year on year, the bureau said.

Global Times