
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Volume (2025) | 688.89 Thousand barrels per day |
Market Volume (2030) | 738.48 Thousand barrels per day |
CAGR | 1.40 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Malaysia Oil and Gas Market Analysis
The Malaysia Oil And Gas Market size in terms of production volume is expected to grow from 688.89 thousand barrels per day in 2025 to 738.48 thousand barrels per day by 2030, at a CAGR of 1.4% during the forecast period (2025-2030).
Malaysia's oil and gas sector maintains its position as a cornerstone of the national economy, contributing approximately 20% to the country's GDP. The industry's oil and gas infrastructure has evolved significantly, with an extensive network of over 10,235 kilometers of pipelines facilitating efficient distribution and transportation of petroleum products. This robust infrastructure network has positioned Malaysia as a strategic hub in Southeast Asia's energy landscape, particularly given its location along one of the world's busiest shipping routes. The country's remaining commercial reserves, estimated at over 5 billion barrels of hydrocarbon equivalent distributed across more than 400 fields, underscore its significant potential for sustained production.
The downstream sector has witnessed substantial developments, particularly in oil and gas storage and trading infrastructure. Dialog Group's Pengerang Deepwater Terminal has emerged as a flagship project, with Phase 3 construction progressing steadily. The project, which includes storage terminals, common tankage facilities, and deepwater marine facilities at Jetty 3, secured a long-term storage agreement with BP Singapore in 2023, demonstrating continued international confidence in Malaysia's storage capabilities. These developments align with Malaysia's strategic vision to establish itself as a prominent oil and gas storage and trading hub in the region.
Infrastructure modernization and expansion continue to drive sector evolution, with significant projects advancing across the value chain. In June 2023, McDermott International completed the Pan Malaysia Transportation and Installation Projects for SapuraOMV and Sarawak Shell Berhad, enhancing offshore infrastructure near Miri, Sarawak. This project, encompassing the transport and installation of jackets, topsides, and pipelines for the Gorek, Larak, and Bakong natural gas fields, represents the ongoing commitment to infrastructure development in the region.
The industry is experiencing a strategic shift toward value-added activities, particularly in the downstream sector. Malaysia is actively pursuing opportunities in LNG regasification, petrochemicals, refineries, and trading facilities. The development of specialized industrial zones, such as the Sipitang Oil & Gas Industrial Park (SOGIP), demonstrates this commitment to downstream expansion. SOGIP's comprehensive development plan includes facilities for manufacturing resins, plastics, pharmaceutical products, fertilizers, and packaging materials, positioning Malaysia to capture higher-value segments of the petrochemical value chain while fostering the growth of supporting industries like bulk product storage, logistics, and engineering services.
Malaysia Oil and Gas Market Trends
Growing Investments in natural gas Infrastructure and LNG Projects
Malaysia's oil and gas sector is witnessing substantial growth driven by increasing investments in natural gas infrastructure and LNG projects. The country's strategic position as the world's fifth-largest LNG exporter has prompted significant infrastructure development, particularly in terminal capacity expansion and new facility construction. This is evidenced by the Satu Malaysia Terminal in Sarawak, which features three LNG trains with a capacity of 8.1 million metric tons per annum (MTPA), forming an integral part of the Malaysia LNG Complex. The growing demand for natural gas, both domestically and in neighboring regions, has led to increased imports, reaching approximately 3.8 billion cubic meters per day in 2022.
The commitment to expanding natural gas infrastructure is further demonstrated by recent large-scale projects and strategic partnerships. In January 2022, the Malaysian State of Sabah and Petronas announced plans for a new two million metric tons per year LNG terminal at the Sipitang Oil and Gas Industrial Park, aimed at expanding cleaner energy distribution to industrial and commercial businesses. Additionally, strategic partnerships, such as the joint venture between Indian Oil Corporation (IOC) and Petronas, are strengthening the development of LNG terminals, fuel retailing, and gas distribution infrastructure. These investments are particularly significant as they align with regional efforts to reduce carbon emissions and improve air quality through increased natural gas consumption across various end-user segments.
Increasing Demand for Refined petroleum products and Downstream Infrastructure Development
The Malaysian oil and gas market is experiencing substantial growth driven by the rising demand for refined petroleum products across chemical, petrochemical, and transport industries. The country has demonstrated its commitment to meeting domestic demand through significant investments in refining infrastructure, currently operating seven facilities with a combined refining capacity of 955 thousand barrels per day as of 2022. This robust infrastructure development is supported by steady growth in manufactured and refined petroleum products sales, particularly in the LPG sector, where production reached approximately 2.7 million metric tons in 2021, showing consistent growth since 2013.
The market's growth is further propelled by massive investments in downstream infrastructure development, exemplified by Petronas's Refining and Petrochemicals Integrated Development Project (RAPID) in Johor. This ambitious project, with an investment of approximately USD 16 billion, plus an additional USD 11 billion for associated facilities, represents Malaysia's commitment to establishing itself as a major oil refining and storage hub. The RAPID facility, with a nameplate capacity of 279,000 b/d, marks a significant milestone as the country's first refinery capable of producing Euro V standard diesel and gasoline, demonstrating Malaysia's commitment to environmental sustainability while meeting growing domestic demand. The focus on self-reliance and the government's plans to either expand current refineries or construct new ones indicates a strong trajectory for continued infrastructure development in the downstream sector.
Segment Analysis: Upstream
Upstream Segment in Malaysia Oil and Gas Market
The upstream oil and gas segment holds a dominant position in Malaysia's oil and gas market, with significant production capabilities and extensive offshore operations. The country maintains its status as one of the key oil and gas producers in the Asia-Pacific region, with production levels reaching approximately 677.8 thousand barrels per day in 2024. This segment's strength is reinforced by Malaysia's substantial proven reserves, which are the second-largest in Southeast Asia, with remaining commercial reserves estimated at over 5 billion barrels of oil equivalent across more than 400 fields. The upstream sector's prominence is further supported by the state oil company Petronas, which holds exclusive ownership rights to all oil exploration and production projects, managing 98 production sharing contracts (PSC) with various international operators.
Midstream Segment in Malaysia Oil and Gas Market
The midstream oil and gas segment is experiencing rapid growth in Malaysia's oil and gas sector, driven by extensive infrastructure development and strategic positioning. The segment's expansion is supported by one of Asia's most comprehensive oil and gas pipeline networks, totaling about 2,468 km for the Natural Gas Distribution System (NGDS). The growth is further accelerated by ongoing investments in LNG regasification terminals, storage facilities, and pipeline infrastructure. The development of the Trans-ASEAN Gas Pipeline system (TAGP) positions Malaysia as a natural hub for regional gas distribution, while the expansion of storage and transportation capabilities through projects like the Pengerang Independent Deepwater Terminal demonstrates the segment's strong growth trajectory for 2024-2029.
Remaining Segments in Upstream Market Segmentation
The downstream oil and gas segment completes Malaysia's oil and gas market structure, focusing on refining operations and petrochemical production. This segment is characterized by strategic developments in refining capacity, petrochemical manufacturing, and the creation of value-added petroleum products. The segment's significance is enhanced by Malaysia's strategic location along one of the world's busiest shipping routes, enabling it to compete with regional petrochemical hubs. The government's Economic Transformation Programme further strengthens this segment by promoting Malaysia as a significant regional petrochemical player, with various integrated projects aimed at expanding refining and petrochemical capabilities.
Segment Analysis: Midstream
Pipeline Infrastructure Segment in Malaysia Oil and Gas Midstream Market
The oil and gas pipeline infrastructure segment holds a dominant position in Malaysia's midstream oil and gas market, supported by one of the most extensive natural gas pipeline networks in Asia. The country's pipeline infrastructure spans approximately 10,235 kilometers, with 2,468 kilometers dedicated to the Natural Gas Distribution System (NGDS) serving domestic demand. This extensive network includes critical infrastructure like the Peninsular Gas Utilization (PGU) project and multiple interconnected pipelines linking offshore gas fields to processing facilities at Kertih and the Bintulu LNG facility. The strategic importance of this segment is further enhanced by Malaysia's participation in the Trans-ASEAN Gas Pipeline system (TAGP), positioning the country as a natural hub for regional gas distribution and transportation.

LNG Infrastructure Segment in Malaysia Oil and Gas Midstream Market
The LNG infrastructure segment is experiencing rapid growth in Malaysia's midstream sector, driven by increasing regional demand and strategic investments in regasification terminals. The segment's expansion is anchored by two major regasification terminals in Peninsular Malaysia - the offshore LNG Regasification Terminal in Sungai Udang with a capacity of 530 mmscfd, and the onshore LNG Regasification Terminal in Pengerang, Johor (RGTP) with a capacity of 490 mmscfd. These facilities are crucial for receiving, storing, and degasifying imported LNG for distribution through the PGU pipeline network. The growth is further supported by Malaysia's position as one of the world's largest LNG exporters, with strategic locations amid important routes for seaborne energy trade.
Remaining Segments in Midstream Market
The oil and gas storage and oil and gas transportation segments play vital complementary roles in Malaysia's midstream oil and gas market. The storage infrastructure includes 17 fuel terminals, 13 aviation terminals, and 8 LNG terminals and bottling facilities, providing essential support for domestic consumption and export operations. The transportation segment encompasses various logistics assets including marine vessels and specialized equipment for moving oil and gas products. These segments are particularly significant given Malaysia's strategic location along major shipping routes, enabling the country to serve as a regional hub for oil and gas storage and trading, especially with developments like the Pengerang Independent Deepwater Petroleum Terminal.
Segment Analysis: Downstream
Downstream Segment in Malaysia Oil and Gas Market
The downstream oil and gas segment represents a strategically vital component of Malaysia's oil and gas market, encompassing refining operations, petrochemical processing, and value-added petroleum products. Malaysia's strategic location along one of the world's busiest shipping routes has positioned its downstream sector as a crucial hub for petrochemical operations in Southeast Asia. The country's downstream infrastructure includes multiple refineries, petrochemical plants, and advanced processing facilities that contribute significantly to the domestic and export markets. The segment's strength is further enhanced by the Malaysian government's Economic Transformation Programme, which aims to establish the country as a major regional petrochemical player. The presence of key players like Malaysia Oil Refinery Sdn Bhd, Hengyuan Refining Company Berhad, and Petron Malaysia Refining & Marketing Bhd has strengthened the downstream sector's capabilities in producing high-value petroleum products.
Midstream Segment in Malaysia Oil and Gas Market
The midstream oil and gas segment is experiencing rapid growth driven by expanding pipeline infrastructure and increasing LNG terminal capacity. Malaysia's extensive natural gas pipeline network, spanning approximately 10,235 km, continues to expand with new projects and infrastructure developments. The segment's growth is supported by strategic investments in regasification terminals, including the facilities in Sungai Udang and Pengerang, Johor, which have enhanced the country's gas processing and distribution capabilities. The development of the Trans-ASEAN Gas Pipeline system (TAGP) project positions Malaysia as a natural hub for regional gas distribution, further accelerating the segment's expansion. The continued investment in storage terminals, transportation infrastructure, and LNG facilities demonstrates the strong growth trajectory of the midstream sector.
Remaining Segments in Malaysia Oil and Gas Market
The upstream oil and gas segment continues to play a fundamental role in Malaysia's oil and gas market through exploration and production activities. With significant offshore operations and multiple production sharing contracts, the upstream sector maintains its position as a critical component of the country's energy infrastructure. The segment benefits from ongoing technological advancements in deepwater exploration and production capabilities, supported by major international oil companies and domestic operators. The collaboration between foreign companies and PETRONAS in production sharing agreements has strengthened the upstream sector's operational capabilities and resource development potential.
Malaysia Oil and Gas Industry Overview
Top Companies in Malaysia Oil and Gas Market
The Malaysian oil and gas market features prominent players like Petronas, Royal Dutch Shell, ExxonMobil, and several other international and domestic companies across the upstream, midstream, and downstream segments. These companies are increasingly focusing on technological advancement and digital transformation to enhance operational efficiency and maintain a competitive advantage. Strategic partnerships and joint ventures have become crucial tools for market expansion, particularly in exploring new oil exploration fields and developing infrastructure projects. Companies are also emphasizing portfolio diversification, with growing investments in both conventional and unconventional resources, while simultaneously developing capabilities in renewable energy sectors. The industry demonstrates a strong focus on operational excellence through cost optimization, supply chain improvements, and enhanced production techniques, while maintaining stringent safety and environmental standards.
State-Owned Enterprise Dominates Market Structure
The Malaysian oil and gas market structure is characterized by the dominant presence of Petronas, the state-owned enterprise that holds exclusive ownership rights to all oil exploration and production projects in the country. The market operates through a system of production sharing contracts (PSCs) where international oil companies partner with Petronas to develop and operate various projects. This arrangement has created a unique ecosystem where global majors like Shell and ExxonMobil collaborate with the national oil company while maintaining a significant operational presence across the value chain.
Recent market developments show an increasing trend of strategic consolidation through mergers, acquisitions, and joint ventures. Notable examples include PTTEP's acquisition of Murphy Oil's Malaysian business and the formation of joint ventures between Petronas and Saudi Aramco for the RAPID project. The market also witnesses active participation from regional players, particularly from other Southeast Asian countries, who are expanding their presence through strategic partnerships and asset acquisitions, contributing to a dynamic competitive landscape.
Innovation and Sustainability Drive Future Growth
Success in the Malaysian oil and gas market increasingly depends on companies' ability to balance operational efficiency with environmental sustainability. Incumbent players are focusing on technological innovation, particularly in deepwater exploration and production capabilities, while also investing in digitalization initiatives to optimize operations and reduce costs. The development of integrated value chains, from exploration to retail distribution, has become a crucial strategy for maintaining market position, while the ability to adapt to evolving environmental regulations and sustainability requirements is becoming increasingly important for long-term success.
For new entrants and smaller players, success lies in identifying and developing niche market segments, particularly in specialized services and technology solutions. The market presents opportunities for companies that can offer innovative solutions in areas such as enhanced oil recovery, environmental management, and digital transformation. Strategic partnerships with established players, particularly Petronas, remain crucial for market entry and expansion. Companies must also consider the growing importance of local content requirements and the need to develop strong relationships with local stakeholders while maintaining flexibility to adapt to changing market conditions and regulatory requirements. Additionally, the advancement of oil and gas technology and oilfield services is pivotal in driving efficiency and sustainability within the industry.
Malaysia Oil and Gas Market Leaders
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Royal Dutch Shell
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Altus Oil & Gas Malaysia Sdn. Bhd.
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ExxonMobil Corporation
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BP Plc.
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Shell Plc.
- *Disclaimer: Major Players sorted in no particular order

Malaysia Oil and Gas Market News
- January 2023: A consortium of JGC Corporation and Samsung Heavy Industries (SHI) secured an engineering, procurement, construction, and commissioning (EPCC) contract with Petronas for Malaysia's first nearshore floating LNG facility project. The planned facility is set to become the world's first nearshore floating LNG facility. It has a minimum production capacity of 2 million tonnes of LNG annually and is scheduled for completion in 2027.
- December 2022: Petronas announced the oil and gas discovery at the Nahara well in Block SK 306. Petronas Carigali, a wholly owned subsidiary of Petronas, is the operator of the block, with 100 percent participating interest in its Production Sharing Contract (PSC).
Malaysia Oil and Gas Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Crude oil Consumption Forecast in billion cubic feet per day, till 2028
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.1.1 Surging Demand For Refined Petroleum Products
- 4.5.1.2 Significant Untapped Petroleum Reserves in the Sedimentary Basins
- 4.5.2 Restraints
- 4.5.2.1 High Volatility of Crude Oil Prices
- 4.6 Supply Chain Analysis
- 4.7 PESTLE Analysis
5. MARKET SEGMENTATION
- 5.1 Upstream
- 5.2 Midstream
- 5.3 Downstream
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 BP Plc
- 6.3.2 Shell Plc
- 6.3.3 Petronas Gas Bhd
- 6.3.4 Chevron Corporation
- 6.3.5 ExxonMobil Corporation
- 6.3.6 Malaysiaian General Petroleum Corporation
- 6.3.7 Altus Oil & Gas Malaysia Sdn. Bhd.
- 6.3.8 Petro-Excel Sdn Bhd (PESB)
- 6.3.9 Petro Teguh (M) Sdn. Bhd.
- 6.3.10 Malaysiaian Natural Gas Holding Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 A High Number of Discoveries in Recent Years and Ongoing Exploration Activities
Malaysia Oil and Gas Industry Segmentation
The oil and natural gas market is a major industry in the energy market and plays an influential role in the global economy as the world's primary fuel source. The processes and systems involved in producing and distributing oil and gas are highly complex, capital-intensive, and require state-of-the-art technology.
Malaysia's oil and gas market is segmented by sector into upstream, midstream, and downstream. For each segment, the market sizing and forecasts have been done based on volume (thousands of barrels per day).
Malaysia Oil and Gas Market Research FAQs
How big is the Malaysia Oil and Gas Market?
The Malaysia Oil and Gas Market size is expected to reach 688.89 thousand barrels per day in 2025 and grow at a CAGR of 1.40% to reach 738.48 thousand barrels per day by 2030.
What is the current Malaysia Oil and Gas Market size?
In 2025, the Malaysia Oil and Gas Market size is expected to reach 688.89 thousand barrels per day.
Who are the key players in Malaysia Oil and Gas Market?
Royal Dutch Shell, Altus Oil & Gas Malaysia Sdn. Bhd., ExxonMobil Corporation, BP Plc. and Shell Plc. are the major companies operating in the Malaysia Oil and Gas Market.
What years does this Malaysia Oil and Gas Market cover, and what was the market size in 2024?
In 2024, the Malaysia Oil and Gas Market size was estimated at 679.25 thousand barrels per day. The report covers the Malaysia Oil and Gas Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Malaysia Oil and Gas Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Malaysia Oil And Gas Market Research
Mordor Intelligence provides a comprehensive analysis of the petroleum and gas industry. We leverage extensive expertise in the upstream oil and gas, midstream oil and gas, and downstream oil and gas sectors. Our detailed research covers crude oil production, natural gas development, and LNG operations within Malaysia's diverse hydrocarbon landscape. The report offers in-depth coverage of oil drilling activities and oil exploration initiatives. It also highlights emerging trends in both offshore oil and gas and onshore oil and gas operations. This information is available in an easy-to-download report PDF.
Stakeholders gain valuable insights into petroleum products markets, oilfield services, and developments in oil and gas pipeline infrastructure. The analysis includes advanced oil and gas technology implementations, such as oil and gas software solutions and oil and gas automation systems. Our research examines oil and gas processing, oil and gas transportation, and oil and gas storage facilities. It also addresses oil and gas security concerns and oil and gas analytics applications. The report further details developments in shale oil and gas exploration, gas exploration techniques, and oil and gas monitoring systems. This provides stakeholders with actionable intelligence for strategic decision-making.