Petronas Aims to Complete Malaysia LNG Investigation by Mid-Year

(Reuters) — Malaysia's state energy company Petroliam Nasional Berhad, or Petronas, aims to complete an investigation into disruption of Malaysia LNG gas supply by the middle of the year, CEO Tengku Taufik told reporters on Friday.

The company has declared force majeure on gas supply to one of its liquefaction terminals, Malaysia LNG Dua, after a pipeline leak caused by soil movement at the Sabah-Sarawak pipeline on Sept. 21.

Taufik, who was in Tokyo to attend a conference, declined to comment on when force majeure is likely to be lifted.

"We expect to complete our investigation in the first half (of this year)," he said, adding that the company does not know what recommendations will be made or the impact on efforts to resume normal operations.

The disruption fueled fears of a supply shortage as Japan and many European countries scramble to secure gas supplies in the face of a possible total halt to gas from Russia in response to sanctions over its invasion of Ukraine.

To reassure Japanese buyers, Taufik said in October that Petronas would continue efforts to offset any impact on Japanese customers by providing alternative supplies.

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