Gas
Petronas positions LNG as flexibility anchor in China's energy transition
Malaysian energy firm Petronas highlights the evolving role of liquefied natural gas in balancing China's growing power needs and rapid renewable expansion.
Key points
- Petronas supplied approximately 9.1 million tons of LNG to China in 2025.
- The company emphasizes commercial and operational flexibility to match diverse regional infrastructure in China.
- Diversified supply sources, including Malaysia and the LNG Canada project, support grid stability amid high renewable integration.
What happened
Malaysia's state energy company Petronas has outlined its strategy for supplying liquefied natural gas to China, emphasizing flexibility and grid support as the country scales up renewable energy generation. According to China Daily, the China Natural Gas Development Report 2026 points to the ongoing importance of natural gas across industrial, power, and transport sectors.
Petronas executives noted that LNG acts as a critical balancing fuel alongside wind and solar power. Ezran Mahadzir, vice-president of LNG marketing and trading at Petronas, stated that Asia remains at the centre of global energy demand growth, requiring fuel sources that offer both decarbonisation and reliability.
Delivery and partnerships
Since its first delivery in 2009, Petronas has shipped over 65 million metric tons of LNG to China across more than 2,500 cargo deliveries, according to the company. In 2025, deliveries reached about 9.1 million tons, accounting for roughly 11 percent of China's total LNG imports.
China Daily reported that Petronas utilises an asset base spanning its primary complex in Bintulu, floating LNG vessels, and a 25 percent stake in LNG Canada. The company works with Chinese firms such as Shenergy Group and Tiger Gas, adapting delivery models to include dedicated vessels, ISO-tank distribution, and virtual pipeline systems.
Why it matters
As African nations and emerging economies expand their power systems, balancing variable renewable generation with reliable baseload or backup capacity remains a central challenge for energy planners. The Henry Hub natural gas spot price stood at 3.1 US dollars per MMBtu on 20 October 2026, according to US Energy Information Administration data provided by the CEII. For gas-rich African producers looking to supply international markets or develop domestic gas-to-power infrastructure, the diversification of delivery methods—such as small-scale ISO tanks and virtual pipelines demonstrated in the Asian market—offers relevant operational models for improving energy access and grid resilience.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
3.0% of electricity in China came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
