GLNG: Malaysia’s Petronas plans to expand investments in LNG exports from Egypt to Europe

Malaysia’s national oil company (NOC) Petronas is planning to take advantage of current strong demand for liquefied natural gas (LNG) exports from Egypt to Europe following the European Union’s decision to invest in diversifying natural gas imports away from Russia due the conflict in Ukraine.

A large delegation headed by Petronas President and Group CEO Tengku Muhammad met with Egyptian Minister of Petroleum Tarek El Molla to discuss making additional investments in LNG export opportunities in Egypt. Petronas has a joint-operator stakes of 35.5% and 38% respectively at trains 1 and 2, each with a capacity of 3.6mn tonnes per year (tpy), of the LNG export terminal at Idku, Rosetta.

Petronas’s recent interest to engage in Egypt is a sharp reversal from its position of fully exiting from its exploration and LNG partnership with Shell in the country, first reported by Cyprus-based MEES in March. Petronas also has a 50% stake in two offshore exploration blocks in the declining West Delta Marine offshore project.

Egypt is one of the few countries that combines all the competitive elements such as the abundance of natural gas resources, a unique location and huge infrastructure, which makes it a pivotal country regionally in the trade and transport of LNG supplies from the eastern Mediterranean to Europe.