Petronas declares force majeure on gas supply to Malaysia LNG Dua

MALAYSIA'S Petronas said it has declared force majeure on gas supply to one of its liquefaction terminals, Malaysia LNG Dua, due to a pipeline leak caused by soil movement at the Sabah-Sarawak Gas Pipeline on Sept 21.

"This has impacted the supply of gas to MLNG Dua's production facility at Petronas LNG Complex (PLC) in Bintulu, Sarawak," it said in a statement, adding that the force majeure only affects the gas supply to MLNG Dua's production facility.

"The other LNG production facilities within the PLC continue to operate as planned." Petronas did not say how much supply would be affected or how long the disruption would last.

Japanese utility Mitsubishi Corp said last Thursday that Malaysia LNG, majority owned by Petronas, had declared force majeure on LNG supplies to its customers including Mitsubishi, following the pipeline leak.

The Petronas statement, issued over the weekend, said that the pipeline leak had affected its delivery commitments to some of its contracted LNG buyers, and the company was in discussions to "identify suitable mitigation efforts".

It was also conducting an evaluation of the Sabah-Sarawak Gas Pipeline to ensure its integrity and safety.

With a total LNG capacity of 25.7 million tons per annum, the Malaysia LNG project is one of the largest LNG facilities in a single location in the world, according to Mitsubishi.

The project's customers include Japan, South Korea, Taiwan and China. REUTERS

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