Malaysia's Petronas Eyes LNG Supply Deal with Philippines Amid Energy Woes

BANGKOK – As the Philippines grapples with the twin pressures of the raging Middle East war and persistent power supply constraints, additional support may lie just across the sea – in neighboring Malaysia. Malaysian state-owned energy giant Petronas has reaffirmed its interest in supplying liquefied natural gas (LNG) to the Philippines, eyeing an opportunity in the latter’s growing demand for reliable fuel. “We are engaging ourselves directly with some of the players in the Philippines with regard to how we can work together and support LNG requirements for the Philippines,” Petronas LNG Ltd. CEO Rosdi Ab Rahman said on the sidelines of Gastech 2026 here in Thailand’s capital. Ab Rahman did not identify the companies involved, but said “a lot of discussion is ongoing now” as talks over potential LNG contracting strategies continue. Petronas has previously delivered spot LNG cargoes to the Philippines from its massive LNG complex in Bintulu, Sarawak in Malaysia. Ab Rahman said LNG cargoes from Malaysia could reach the Philippines in around two days. That proximity could prove valuable as buyers seek greater flexibility amid heightened volatility in global energy markets. Petronas is banking on its geographic advantage to position itself as a reliable LNG supplier to the Philippines and other Southeast Asian markets. While Petronas could not meet the region’s entire LNG demand amid ongoing supply disruptions in the Middle East, Ab Rahman said the company is doing everything it can to help fill part of the gap. This includes accelerating upstream production to strengthen gas supply and investing in a modern fleet capable of delivering LNG safely and reliably to partners. “These are the things that we are really focusing on to make sure that we are always ready to provide the necessary support to all of our friends in Southeast Asia, especially in the Philippines,” he said. Since 2017, Petronas has delivered more than 200 LNG cargoes across the region, building a growing network of 34 existing buyers and 87 active contracts. In the Philippines, LNG is viewed as a transition fuel, helping reduce its heavy dependence on coal while providing a more flexible pathway toward cleaner power sources. In the central and southern parts of the country, the simultaneous shutdown of several large, aging coal-fired power plants has triggered rotating brownouts and driven electricity prices higher.