MLNG’s acid gas future: handle with care

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06 January 2021

MLNG’s acid gas future: handle with care

Report summary

This report investigates the outlook for PETRONAS's MLNG plant and poses some possible avenues forward. Using Wood Mackenzie's proprietary data, we first look at feedgas supply for the next 17 years and, crucially, how much of the undeveloped feedgas contains high levels of carbon dioxide or hydrogen sulphide. We also explore the economics; first comparing project returns and then on a broader scale how Malaysia's fiscal terms will impact. The final section focuses on what could be done, with three possible scenarios imagined and discussed.

Table of contents

  • Executive summary
  • Uncertain supply outlook
    • Exploration (semi) success: big finds come with big challenges
    • Taxing fiscal terms
    • Other gas demand
    • Fiscal stimulus to cater for dirty gas
    • Centralised CO2 and H2S processing infrastructure and carbon sequestration
    • Reduce MLNG capacity and convert trains to cater for dirty gas
  • In conclusion

Tables and charts

This report includes 4 images and tables including:

  • MLNG feedgas supply outlook
  • Sarawak undeveloped reserves with acid gas
  • Sarawak gas project returns
  • Asia Pacific fiscal term comparison

What's included

This report contains:

  • Document

    MLNG’s acid gas future: handle with care

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