Malaysia’s state oil and gas company Petroliam Nasional Bhd comes with temporarily shuting the Sabah-Sarawak pipeline that feeds gas to its liquefied natural gas (LNG) complex at Bintulu in the state of Sarawak, two industry sources mentioned on Tuesday.
The 500-kilometre pipeline that transports gas from Kimanis in Sabah state to the LNG plant in Sarawak was shut down straight away of May for maintenance intended to take nearly two months, one of the sources with knowledge of the matter stated.
This has slowed production at the Bintulu plant, and likely will hold back spot LNG exports from Malaysia, another source stated.
Petronas, as the state company is typically known, failed to answer a query from Reuters on the matter.
Malaysia’s monthly LNG exports dropped to a four-year low in July a year ago, after a gas slip in the pipeline affected supplies to the LNG plant.