UGAZF - Malaysia LNG Feedstock Gas Supply Faces Headwinds
Between 2018 and 2019, utilization rates at the Malaysia LNG (MLNG) complex have fallen to between 80% and 90%, a decrease from the high utilization rate, typically above 95%, which the liquefaction facility has historically maintained. This downward trend is expected to continue into 2020 as the COVID-19 pandemic and the attendant travel restrictions and physical distancing guidelines implemented to contain the spread of the virus led to a slowdown in LNG demand and decreased nominations.
While near-term lack of demand is expected to drive down utilization rates, this should not obscure the tricky near-to-medium