Malaysia and its national oil company Petroliam Nasional Bhd (Petronas) are expected to benefit from the recent spike in gas price.
The Asian liquefied natural gas (LNG) spot price has been rallying over the past two months and soared more than 18 times to a record high of US$32.50 per million British thermal units (mmBtu) from the April 2020 low of US$2.40 due to the freezing winter in North Asia and Europe, as well as unexpected supply issues.
Asian LNG spot prices have outpaced that of Europe and the United States.
According to a report by Reuters, US gas futures for February at the Henry Hub benchmark currently trade at around US$2.60 per mmBtu, while in Europe, prices at the Dutch TTF hub are around US$10 per mmBtu.
Petronas is the largest LNG exporter in South-East Asia and the third-largest in the world. In 2019, Malaysia’s LNG exports accounted for 7% of LNG exports worldwide, according to data provided by BP’s 2020 Statistical Review of World Energy.
