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AsianOil: Outage reported at Malaysia LNG Satu

An unplanned outage was reported at the Malaysia LNG (MLNG) Satu – part of the country’s nine-train Bintulu LNG complex – last week.
The outage is reported to have resulted from a leak that led to the second train being taken offline. Argus Media cited some term offtakers from the facility as saying the train went offline on March 2 and would be returned to service on March 14.
The train has a capacity of 2.8mn tonnes per year (tpy) of LNG. Malaysia’s state-owned Petronas has a 90% stake in MLNG Satu and markets LNG volumes from the venture on behalf of its partners – Mitsubishi and the Sarawak state government.
Petronas is reported to have approached some Bintulu offtakers requesting that they either load smaller volumes in March or delay the delivery of their March cargoes. Argus reported that Petronas had also sought to exercise its right to cancel at least one term buyer's April delivery under a downward quantity tolerance (DQT) clause in its contract.
Reuters cited Rystad Energy’s senior LNG analyst Kaushal Ramesh as saying the outage was likely to take two cargoes off the market between March and April and that this could potentially trigger replacement demand.
Petronas is also reported to be in the spot market, potentially seeking replacement cargoes for the ones lost to the outage. This comes as Asian spot prices are rising, spurred by concerns over disruptions related to Russia’s invasion of Ukraine and the international response to it.