Cover Story: A gas pipeline’s costly malfunction

April 17, 2020

Dateline 2020-02-27, The Edge:

SUPPLY disruptions” in the commodities sector, which included a decline in crude oil and natural gas production, were named by the central bank as one of the factors that caused Malaysia’s fourth quarter GDP reading to come in way below expectations. GDP for the quarter would have been 4.3% instead of 3.6% had it not been for the disruptions, Bank Negara Malaysia said.

Growth in the mining sector contracted 2.5% year on year in 4Q2019, slower than the 4.3% contraction registered in 3Q2019, as output gradually recovered after major maintenance work in the previous quarter. Growth in natural gas output contracted as production was affected by temporary facility closures, according to Bank Negara’s quarterly bulletin for 4Q2019.

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Petronas sees a bearish 2020

April 16, 2020

Dateline 2020-02-27, The Edge:

Petroliam Nasional Bhd (Petronas) has hinted at a bearish outlook for 2020. The short-term headwind from the Covid-19 outbreak added pressure to the current low energy prices and weak demand.

Petronas is experiencing weaker demand in the current quarter, due to the slowdown in China, the epicentre of the Covid-19 virus, said Petronas president and group chief executive officer (CEO) Tan Sri Wan Zulkiflee Wan Ariffin.

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Petronas earmarks higher domestic capex for this year

April 15, 2020

Ah, 20/20 hindsight:

Dateline 2020-02-26, Malay Mail:

Petroliam Nasional Bhd (Petronas) is maintaining its annual capital expenditure (capex) at RM50 billion for 2020, but domestic capex will increase by more than 10 per cent to between RM26 billion and RM28 billion.

President and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said the higher capex allocated for domestic operations would be spent predominantly on upstream activities.

“There are a few projects. Some are ongoing. A lot of projects that we have already started, we need to continue.

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Malaysia’s Petronas posts lower profit, warns of market volatility

April 14, 2020

Talk about mixed messages (c.f. yesterday’s post).

Dateline 2020-02-26, Reuters:

Malaysian state oil firm Petronas said on Wednesday its fourth-quarter profit slumped 71%, hurt by impairment costs and lower prices of major products.

Petronas said profit after tax for the October-December period fell to 4.1 billion ringgit ($968.12 million) from 14.3 billion ringgit in the same period a year earlier. Excluding impairment charges, profit totalled 9.2 billion ringgit.

Revenue at the firm, formally known as Petroliam Nasional Berhad, slipped 8% to 64 billion ringgit.

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Petronas seen posting strong Q4

April 13, 2020

Dateline 2020-02-25, NST:

Operational efficiency may help Petroliam Nasional Bhd post better results in the fourth quarter (Q4) ended December 31, 2019 but low oil and natural gas prices could yet jeopardise it, analysts said.

In the third quarter, Petronas’ net profit was slashed by half to RM7.42 billion against RM14.62 billion the year before, mainly due to oil price downturn and net impairment on assets.

However, it was partially offset by lower net product and production costs, as well as lower tax expenses.

Petronas is expected to release its Q4 results this week.

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Malaysia eyes B30 biodiesel for 2025

April 12, 2020

Dateline 2020-02-21, Just Auto:

Malaysia will implement a B30 biodiesel programme for its transport sector by 2025 or earlier, prime minister Mahathir Mohamad said at the launch of the country’s National Automotive Policy plan.The policy will include supporting measures such as the development of testing and research standards to facilitate the adoption of biodiesel with a 30% palm oil content, Mahathir said, according to Reuters.

Malaysia’s primary industries ministry had said earlier it planned to test a B30 programme in June.

Last January, the Thai government announced plans to establish E20 ‘gasohol’ as the main fuel for passenger vehicles in the second half of 2020, as it looked to reduce its dependence on imported fossil fuels.

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B20 biodiesel to be sold in 3,400 petrol stations by mid-2021

April 11, 2020

Dateline 2020-02-20, FMT:

The government will be rolling out its B20 biodiesel programme in stages to cover 3,400 petrol stations nationwide in a push towards greener energy and increasing palm oil production.

The primary industries ministry today said the B20 biodiesel programme is expected to be fully implemented by the middle of next year.

It will be held in collaboration with petroleum companies like Petronas, Shell, Petron, Chevron and BHP.

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Malaysia’s Kimanis crude exports to halve in April due to maintenance

April 10, 2020

Dateline 2020-02-19, Reuters:

New repair works scheduled by Royal Dutch Shell in its oilfields in Malaysia are likely to halve exports of Kimanis crude cargoes in April and squeeze supplies in Asia, two sources said on Wednesday.

Kimanis is Malaysia’s largest export grade and it is produced from the deepwater fields of Gumusut-Kakap and Malikai offshore Sabah, which are operated by Shell.

Maintenance at Malikai were planned for April, but the operator recently scheduled repair works at Gumusut-Kakap during the same period, one of the sources said.

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Petronas’ 2nd FLNG Sets Sail for Malaysian Offshore Field

April 9, 2020

Dateline 2020-02-18, OE:

Malaysian oil and gas giant Petronas has said that its second FLNG Unit, the PFLNG Dua, has set sail from South Korea, and is on its way to the Rotan gas field, offshore Malaysia.

The journey, which started from the Samsung Heavy Industries yard in Korea, will cover 1,840 nautical miles over a course of approximately two-weeks.

Once moored at the Rotan gas field at a water depth of 1,300 meters, the 393-meters long FLNG DUA will start its installation, hook-up, and commissioning.

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Case closed on 20% oil royalty

April 8, 2020

Dateline 2020-02-14, FMT:

At a dialogue session organised by the Malaysian French Chamber of Commerce and Industry, Prime Minister Dr Mahathir Mohamd played down the state-federal tussle over the 20% oil royalty. The increase was promised to Sabah and Sarawak by the Pakatan Harapan government (PH) if it came to power.

After a long period of procrastination, it is clear and transparent that the PH government has no intention of keeping its promise. The hope for more oil royalty for development funds has now been marked down as another election promise meant to be broken.

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