Some trade and shipping sources said that Malaysia plans to slash its liquefied natural gas (LNG) exports to the lowest level since mid-2018 as producers are cutting production amid record-low spot prices.
The world’s fourth-biggest LNG exporter would ship about 1.5-1.64 million tonnes this month, a drop from 1.92 million tonnes in April. If realized, the number will be the lowest since June-July 2018.
Industry sources informed that state-owned Petroliam Nasional Bhd. (Petronas) has cut exports of spot cargoes from 5-10 in typical summer months to only about 1-2 as the company is undergoing a production cut. Nonetheless, the company is still meeting its term commitments at the moment.
Last week, Petronas said that its first-quarter profit slumped by 68%, prompting it to cut capital expenditure and operating expenses.
