Oil and Gas in Malaysia Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 2.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Oil and Gas in Malaysia Market Analysis
The Malaysia Oil and Gas Midstream Market is projected to register a CAGR of over 2% during the forecast period.
COVID-19 negatively impacted the market in 2020. Presently the market has reached pre-pandemic levels.
- Over the medium term, the increasing demand for oil and gas and increasing pipeline projects are expected to drive the market.
- On the other hand, the country's decreasing oil and gas production is expected to hinder the market's growth.
- Nevertheless, increasing gas trading with Asia has resulted in neighboring countries turning to Malaysia for storage. Companies in Malaysia can meet the rising storage demands. This is expected to create enormous opportunities for the Malaysia oil and gas midstream market.
Oil and Gas in Malaysia Market Trends
This section covers the major market trends shaping the Malaysia Oil & Gas Midstream Market according to our research experts:
LNG Terminals Segment is Expected to Dominate the Market
- The Liquefied natural gas (LNG) terminals segment is expected to dominate the midstream market of Malaysia due to the increasing demand for natural gas in the country and neighboring regions. The majority of countries want to reduce their carbon emissions to control the air quality in the environment, which has increased the consumption of natural gas in various end-user segments.
- Satu Malaysia Terminal is an LNG terminal in Sarawak, Malaysia. It constitutes three LNG trains and has a capacity of 8.1 million metric tons per annum (MTPA). It is a part of the Malaysia LNG Complex, also known as the Petronas Bintulu LNG Complex.
- As of 2021, the natural gas imports in the country were around 2.5 billion cubic meters per day. The imports were less in 2021 compared to 2020. This decrease in imports signifies the operation of new LNG terminals.
- For instance, in January 2022, the Malaysian State of Sabah and Petronas announced plans for a two million metric tons/year (mmty) liquefied natural gas (LNG) terminal. The new facility planned for the Sipitang Oil and Gas Industrial Park is a part of Petronas's collaboration with the state to expand Sabah's distribution of cleaner energy to industrial and commercial businesses.
- Furthermore, in August 2021, the Indian Oil Corporation (IOC) entered a joint venture with Malaysia's state-run Petronas to include building liquefied natural gas (LNG) terminals, fuel retailing, and gas distribution, driving the growth of the segment.
Decreasing Production of Gas to Restrain the Market
- Malaysia heavily relies on oil and gas as its primary energy source. According to BP statistics, in 2021, the share of oil and gas in countries' primary energy consumption was close to 70%. This signifies the dependency on oil and gas in Malaysia. Although the country has been taking steps to reduce its dependency and diversify to other sources for the short term, the trend is expected to continue.
- Moreover, between 2015 to 2020, the country noticed a decline in domestic natural gas production, reducing to 68.7 billion cubic meters in 2020 compared to 76.7 billion cubic meters in 2015. However, a sharp rise was recorded in 2021 at 74.2 billion cubic meters, but the production is expected to decline in the coming years.
- Malaysia's diminishing output is due to aging fields, notably its larger resources in the shallow waters offshore of Peninsular Malaysia, which constrain the country's midstream market.
- Furthermore, Malaysia's oil pipeline network could be more modest. The country primarily relies on tankers and vehicles to transfer midstream petroleum products onshore. The pipeline transports oil products from Indonesia's Dumai oil refinery to Malaysia's Melaka oil refinery.
- As a result of lower natural gas consumption and production and a limited pipeline network, Malaysia's oil and gas midstream business is constrained. However, an increase in oil and gas consumption, as well as increased investment in the sector, is going to drive the market over the projected period.
Oil and Gas in Malaysia Industry Overview
The Malaysian oil and gas midstream market is moderately consolidated. A few major companies (in no particular order) include Fluor Corporation, Petroliam Nasional Berhad (PETRONAS), Dialog Group Berhad, Vitol Group, and Royal Vopak N.V., among others.
Oil and Gas in Malaysia Market Leaders
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Petroliam Nasional Berhad (PETRONAS)
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Dialog Group Berhad
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Fluor Corporation
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Royal Vopak N.V.
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Vitol Group
*Disclaimer: Major Players sorted in no particular order
Oil and Gas in Malaysia Market News
- In September 2022, Shell and its partner Petronas announced a decision of final investment decision to develop the Rosmari-Marjoram gas project, which will feed the Bintulu LNG export plant in Sarawak, Malaysia. The Rosmari-Marjoram development is one of the strategic projects that will guarantee a reliable gas supply to the Petronas-owned 30 million tons per annum Bintulu LNG complex.
- In April 2022, Petronas and Sabah Oil & Gas Development Corporation (SOGDC) signed a key memorandum of understanding (MoU) that will see the Malaysian national energy company build Sabah's first and largest near-shore floating liquefied natural gas (LNG) facility estimated to cost USD 2.02 billion (MYR 8.8 billion).
Oil and Gas in Malaysia Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD million, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 PESTLE ANALYSIS
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Transportation
5.1.2 Storage
5.1.3 LNG Terminals
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Petroliam Nasional Berhad (PETRONAS)
6.3.2 Dialog Group Berhad
6.3.3 Vitol Group
6.3.4 Royal Vopak NV
6.3.5 Fluor Corporation
6.3.6 Gas Malaysia Berhad
6.3.7 MISC Berhad
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Oil and Gas in Malaysia Industry Segmentation
The midstream sector covers the transportation, storage, and trading of crude oil, natural gas, and refined products. In its unrefined state, crude oil is transported by two primary modes: tankers, which travel interregional water routes, and pipelines, which most of the oil moves through for at least part of the route.
The Malaysian Oil and Gas Midstream Market is segmented by type. By type, the market is segmented into transportation, storage, and LNG terminals. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
| Type | |
| Transportation | |
| Storage | |
| LNG Terminals |
Oil and Gas in Malaysia Market Research FAQs
What is the current Malaysia Oil and Gas Midstream Market size?
The Malaysia Oil and Gas Midstream Market is projected to register a CAGR of greater than 2% during the forecast period (2024-2029)
Who are the key players in Malaysia Oil and Gas Midstream Market?
Petroliam Nasional Berhad (PETRONAS) , Dialog Group Berhad, Fluor Corporation, Royal Vopak N.V. and Vitol Group are the major companies operating in the Malaysia Oil and Gas Midstream Market.
What years does this Malaysia Oil and Gas Midstream Market cover?
The report covers the Malaysia Oil and Gas Midstream Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Malaysia Oil and Gas Midstream Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Oil and Gas in Malaysia Industry Report
Statistics for the 2024 Oil and Gas in Malaysia market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Oil and Gas in Malaysia analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
