Japan Faces New LNG Supply Challenge as Malaysia Curbs Shipments

  • Roughly 10 LNG cargoes will be lost through year-end: traders
  • Disruption will intensify global hunt for spot LNG supply

Japan, which imports most of its energy needs, is grappling with a worsening shortfall, and narrowly avoided blackouts earlier this year.

Photographer: Kiyoshi Ota/Bloomberg
Lock
This article is for subscribers only.

Malaysia will curb liquefied natural gas shipments to Japan this winter after a pipeline leak disrupted exports, another hit to already strained global supplies of the power-station fuel.

Petroliam Nasional Bhd. has made a request to reduce contracted deliveries to several Japanese customers through the year-end, according to traders with knowledge of the matter. Petronas said Wednesday that it declared force majeure on supply to its LNG export facility due to a leak on Sabah-Sarawak Gas Pipeline on Sept. 21.