Malaysia Oil and Gas Midstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Malaysian Oil and Gas Midstream Market is segmented by Type (Transportation, Storage, and LNG Terminals).

Market Snapshot

Malaysian Oil and Gas Midstream Market Size
Study Period: 2019-2027
Base Year: 2021
CAGR: >1.08 %
Malaysian Oil and Gas Midstream Market Key Players

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Market Overview

The Malaysian oil and gas midstream market is expected to register a CAGR of more than 1.08% during the forecast period, 2022–2027. The COVID-19 outbreak in Q1 2020 had negatively impacted the country's oil and gas midstream market as the Malaysian government imposed a Movement Control Order (MCO) to stop the spread of COVID-19 in the country. Additionally, the pandemic has caused disruption in oil and gas operations in the country. For instance, giant oil and gas company PETRONAS, Malaysian state energy, has reported the risks of delays to numerous projects due to extended coronavirus-related lockdowns locally and around the world. Factors such as increasing demand for oil and rising investment in the pipeline and storage sectors are expected to boost the demand for the Malaysian oil and gas midstream market during the forecast period. However, decreasing oil and gas production levels, coupled with a lack of policies on oil stockpiling, has impeded growth in the oil and gas midstream sector.

  • The LNG terminals segment is expected to dominate the market over the forecast period with the expansion and construction of new LNG terminals. New LNG terminals are expected to decrease the cost of transportation.
  • Malaysia is expanding its oil terminal and storage capacity as the need for more oil storage and trading grows within Asia. Like its neighbor, Singapore lacks the space to continue increasing its storage capacity. As Singapore runs out of space for oil and gas storage, companies in Malaysia can use it as an opportunity for further growth.
  • The gas and oil production in the country has been decreasing gradually over the years. This has become a cause of concern for the companies in the sector about future growth prospects. Therefore, falling production acts as a restraint for the market.

Scope of the report

The Malaysian oil and gas midstream market report includes:

Type
Transportation
Overview
Existing Infrastructure
Projects in Pipeline
Upcoming Projects
Storage
Overview
Existing Infrastructure
Projects in Pipeline
Upcoming Projects
LNG Terminals
Overview
Existing Infrastructure
Projects in Pipeline
Upcoming Projects

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Key Market Trends

LNG Terminals Segment is Expected to Dominate the Market.

  • In terms of type, the LNG terminals sub-segment is expected to dominate the market during the forecast period, 2022-2027. The major factors supporting the growth of the market are increasing consumption of oil and growing investments in the midstream oil and gas industry in the country.
  • In February 2021, Petronas commissioned Dua FLNG floating LNG terminal in Sabah, Malaysia. The company's 1.5 million metric tons per year (mmty) floating liquefied natural gas (FLNG) facility is capable of reaching gas fields in depths of up to 1.5 kilometers (.93 miles).
  • As of 2020, natural gas LNG imports increased to 3.6 billion cubic meters per day, up from 3.3 billion cubic meters in 2019. Thus, to decrease the share of LNG imports, the need for new LNG terminals is required, which will drive the growth of the segment in the country.
  • 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.
  • The Pengerang oil storage terminal in Johor completed phase 2 of its construction and increased its crude oil storage capacity to 20.8 million barrels for crude oil and petroleum product storage. Additionally, it has now completed phase 3 of construction, which expects to add about 2.7 million barrels of storage for clean petroleum products.
  • Additionally, in 2021, the Indian Oil Corporation (IOC) announced that it was expanding its 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.
  • Hence, LNG terminals are expected to increase slightly during the forecast period due to an increase in the consumption of oil and an increase in investments into the midstream sector.
Malaysian Oil and Gas Midstream Market  Trends

Decreasing Production of Gas to Restrain the Market

  • Natural gas consumption decreased to 38.2 billion cubic meters in 2020, down from 46.8 billion cubic meters in 2019. The gas production also reduced to 73.2 billion cubic meters in 2020, before reaching an all-time high of 79.3 billion cubic meters in 2019.
  • Malaysia’s declining production comes as a result of maturing fields, particularly its larger fields in the shallow waters offshore of Peninsular Malaysia, which in turn, acts as a restraint for the midstream market in the country.
  • To offset the decline in production, PETRONAS wants to attract new investment for smaller, marginal fields and reverse production declines by using enhanced oil recovery (EOR) techniques.
  • Also, in Malaysia, the oil pipeline network is relatively limited. The country mainly relies on tankers and trucks to distribute midstream petroleum products onshore. The oil product pipeline runs from the Dumai oil refinery in Indonesia to the Melaka oil refinery in Melaka City, Malaysia.
  • Thus, the Malaysian oil and gas midstream industry is restrained due to decreased natural gas consumption and production, along with a limited pipeline network. However, over the forecast period, an increase in the consumption of oil and gas, along with growth in the investment in the sector, is expected to drive the market.
Malaysian Oil and Gas Midstream Market Analysis

Competitive Landscape

The Malaysian oil and gas midstream market is moderately consolidated. Some of the major companies include Fluor Corporation, Petroliam Nasional Berhad (PETRONAS), Dialog Group Berhad, Vitol Group, and Royal Vopak NV.

Recent Developments

  • In August 2021, Malaysia's national oil company Petronas issued a front-end engineering and design tender for a third floating liquefied natural gas or FLNG plant. The PFLNG Tiga is expected to have an LNG production capacity of around 2 million mt/year and will be deployed near-shore in the eastern state of Sabah on the island of Borneo.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD million, till 2027

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 PESTLE ANALYSIS

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Transportation

        1. 5.1.1.1 Overview

          1. 5.1.1.1.1 Existing Infrastructure

          2. 5.1.1.1.2 Projects in Pipeline

          3. 5.1.1.1.3 Upcoming Projects

      2. 5.1.2 Storage

        1. 5.1.2.1 Overview

          1. 5.1.2.1.1 Existing Infrastructure

          2. 5.1.2.1.2 Projects in Pipeline

          3. 5.1.2.1.3 Upcoming Projects

      3. 5.1.3 LNG Terminals

        1. 5.1.3.1 Overview

          1. 5.1.3.1.1 Existing Infrastructure

          2. 5.1.3.1.2 Projects in Pipeline

          3. 5.1.3.1.3 Upcoming Projects

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Petroliam Nasional Berhad (PETRONAS)

      2. 6.3.2 Dialog Group Berhad

      3. 6.3.3 Vitol Group

      4. 6.3.4 Royal Vopak NV

      5. 6.3.5 Fluor Corporation

        1. 6.3.5.1 Petro-Excel Sdn Bhd (PESB)

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Malaysia Oil and Gas Midstream Market market is studied from 2019 - 2027.

The Malaysia Oil and Gas Midstream Market is growing at a CAGR of >1.08% over the next 5 years.

Petroliam Nasional Berhad (PETRONAS) , Dialog Group Berhad, Fluor Corporation, Royal Vopak N.V., Vitol Group are the major companies operating in Malaysia Oil and Gas Midstream Market.

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