Malaysian oil company Petroliam Nasional aims to restart a gas pipeline by the first quarter of next year.
Petronas declared a force majeure on gas supply to Malaysia LNG Dua due to a pipeline leak caused by soil movement at its Sabah-Sarawak Gas Pipeline, Reuters reported.
The company aims to complete an investigation into the gas supply disruption by the middle of this year.
The disruption had fuelled fears of a supply shortage to customers, including Japanese utilities, but Petronas has said it would continue efforts to provide alternative supplies.
"Our plan is to complete the work by Q1 2024," said Shamsairi Ibrahim, vice president of LNG marketing at Petronas.
In an interview with Reuters, Shamsairi also reiterated Petronas' wish to extend its long-term contracts with its Japanese customers, adding that discussions are ongoing.
Japan, Malaysia's top client, imported 12 million tonnes of LNG in 2022, up 19% from 2021, according to Japan's trade data.
Shamsairi expects Asian spot LNG prices to remain at current levels or trend lower towards the third quarter, excluding the risk of an unusually warm summer, as major buyers China and Japan reduced consumption after prices spiked to record levels last year.
Global gas prices surged last year after Russia cut supplies to Europe, forcing the bloc to import record amounts of LNG.
Major Malaysian gas pipeline to restart by early next year
