Malaysia Diverts LNG to Power Plants as Demand Surges 11.5%

Petronas increases domestic gas supply to meet record electricity demand driven by heatwaves and data center growth. Malaysia has ramped up domestic LNG use for power generation after electricity demand in peninsular Malaysia surged 11.5% year-on-year in April. The increas

Petronas increases domestic gas supply to meet record electricity demand driven by heatwaves and data center growth.

Malaysia has ramped up domestic LNG use for power generation after electricity demand in peninsular Malaysia surged 11.5% year-on-year in April. The increase is attributed to a severe heatwave and rising consumption from data centers, pushing demand to record levels.

The country, the world’s fifth-largest LNG exporter, typically prioritizes overseas shipments but has redirected supply from offshore fields to meet domestic needs. Peninsular Malaysia accounts for 80% of national power demand, straining the grid amid sustained high temperatures.

No immediate market reaction was reported, though the shift may tighten global LNG supply if domestic allocations persist.

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