Petroliam Nasional Berhad, aka Petronas, has declared force majeure on supplies from its Malaysia LNG (MLNG) facility due to a pipeline leak, which could add more pressure on Asian and European liquefied natural gas buyers looking to cover before the winter season.  

“It’s expected that the leak at the Sabah-Sarawak gas pipeline that supplies the Bintulu complex will lead to the loss of around three cargoes each month,” Kpler senior analyst Laura Page told NGI. “Depending on the duration of the supply disruption, which is currently unknown, this could potentially strain an already tightly supplied market this winter. 

Page said most of the plant’s offtakers are based in Japan, but China National Offshore Oil Corp. and Korea Gas Corp. also have long-term contracts with...