ASEAN LNG producers to leverage on combined strengths

Three major liquefied natural gas (LNG) producers ? Indonesia, Malaysia and Brunei ? have embarked on an initiative to leverage on their combined strengths to better compete in markets.

Substantial progress had been made in the area, says Tan Sri Hassan Marican, president and chief executive officer of national oil corporation Petronas.

?We have agreed to synchronise our respective plant operations in order to maximise plant availability to ensure continuous and secure supplies to our customers,? he said in his working paper at the Third Indonesian International Oil, Gas and Energy Conference and Exhibition in Bali on Saturday.

His paper ?LNG Development for the Asia Region? was delivered by the managing director of Malaysian Liquefied Natural Gas Bhd (MLNG), Abdullah Karim.

A total of 250 industry leaders from 12 countries are participating in the two-day conference and exhibition held in conjunction with the 20th Asean Ministers on Energy Meeting (AMEM).

Hassan said Indonesia, Malaysia and Brunei, which together produced 65% of LNG in the Asia region, had also agreed to pool their shipping capacities to leverage on excess capacities.

He said these initiatives would make them individually and collectively much stronger as a source of LNG supplies with the added security of LNG plants from four locations in the region and a fleet of 25 ships.

?We have already seen last year how the benefits of co-operation alleviated possible problems that could arise from the Arun (in Acheh province in Sumatra) shutdown by ensuring continuity of supply to LNG customers,? he said.(*)