Petronas Adjust LNG Output Amid Low Prices: Press

Malaysian LNG exporter Petronas said on June 1 it was "optimising its production volume" in response to low prices and weaker demand, Reuters reported.

"In tackling the challenges posed in today's environment of low LNG prices and tightened demand due to the ongoing Covid-19 pandemic, Petronas is optimising its production volume to adapt to the market slowdown," the company told the news agency.

Reuters reported late last month that Petronas had cut gas production and lowered exports, with its LNG shipments in May set to slump to their lowest level since mid-2018. Malaysia was the fourth biggest exporter of LNG in the world last year, delivering 26.2mn mt.

In contrast, the world's top LNG exporter Qatar said it had no plans to cut production, saying such a step would be unnecessary, despite the current market conditions, thanks to its low cost. As well as producing profitable liquids along with the gas, it also owns a large shipping fleet. It is targeting a 30% reduction in capital and operational spending, however.

Petronas suffered a 68% drop in net profits in the first quarter, on the back of lower prices and asset impairments. It raised $6bn from a multi-tranche senior bond offering in April.