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Malaysia's Sabah-Sarawak gas pipeline shut for repairs: sources

[SINGAPORE] Malaysia's state oil and gas company Petroliam Nasional Bhd has temporarily shut the Sabah-Sarawak pipeline that feeds gas to its liquefied natural gas (LNG) complex at Bintulu in the state of Sarawak, two industry sources said on Tuesday.

The 500-kilometre pipeline that transports gas from Kimanis in Sabah state to the LNG plant in Sarawak was shut from the start of May for repairs that will take about two months, one of the sources with knowledge of the matter said.

This has slowed production at the Bintulu plant, and potentially will curb spot LNG exports from Malaysia, a second source told Reuters.

Petronas, as the state company is typically known, did not respond to a query from Reuters on the matter.

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Malaysia's monthly LNG exports fell to a four-year low in July last year, after a gas leak in the pipeline disrupted supplies to the LNG plant.

The exports have since recovered and were up more than 50 per cent in April this year from the low hit in July 2018, according to Refinitiv Eikon shipping data.

REUTERS