Malaysia energy markets outlook 2017: shifting to a net energy importer?
Malaysia has been very successful in developing it upstream gas sector. Around 17 tcf of gas has been discovered between 2012 and 2016 in offshore Sarawak. The new discoveries provide fresh gas feedstock to sustain East Malaysia's LNG exports undertaking and new projects. While we expect Malaysia to continue exporting its surplus gas, its reliance on oil and coal imports is on the rise. Malaysia turned into a net oil importer in 2013, as demand for oil products continued to grow surpassing its domestic oil production. The reliance on oil imports is expected to grow, in line with the upcoming RAPID project. Similarly for coal, the country's choice for cheaper coal for power generation will increase its reliance on coal imports, particularly from Indonesia and Australia. The country's coal imports are expected to reach 22 Mtoe by 2035. Overall, combining the country's position across the key fuel sources – gas, oil and coal, Malaysia could turn into a net energy importer in 2020.