Malaysia's natural gas and crude oil production will decline by 2025
Danial Azhar
KUALA LUMPUR - Malaysia's government announced on Friday that it expects a lower crude oil and natural gas output in 2025 as a result of planned maintenance shutdowns and a softer demand for some export markets.
In a report that was released along with its budget for 2025, the government stated that natural gas production would decline in 2025 as a result of the planned closures in the state of Sarawak due to maintenance. The government did not identify the two facilities.
The government stated that "the overall production of gas will remain below 2024's capacity despite the fact that several new plants are scheduled to begin operations."
The company also expects a moderated demand from major LNG importers like Japan, China and South Korea. China and Japan are two of the top LNG importers in the world, with Japan being a major LNG export market for Malaysia.
According to the government, it is also expected that the crude oil and condensate sector will contract due to lower production on Peninsular Malaysia after scheduled maintenance in the second half 2025.
It said that the overall mining sector is expected to contract by 1% between 2025 and 2024 compared with a projected growth rate of 2.2% for 2024.
The projected growth in mining exports for 2025 is 2.1%, down from the estimated 2.8% increase this year due to expected lower demand for LNG and crude oil.
Malaysia's government has warned that lower crude oil prices and production will affect Malaysia's revenue and tax collection related to petroleum. The government projects that Brent crude oil will average $75 to $80 per barrel by 2025.
Petronas, the national energy company of Malaysia, is also known as Petroliam Nasional Berhad
(source: Reuters)
