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Malaysia's Petronas says 'optimising production volume' on low LNG prices
[SINGAPORE] Malaysia's Petronas said on Monday it was "optimising its production volume" to adapt to low liquefied natural gas (LNG) prices and reduced demand due to the coronavirus outbreak.
The company was responding to a Reuters query from last week on cuts in gas production and reduced LNG export volumes.
Reuters reported last week that monthly LNG export volumes from Malaysia, the world's fourth-largest exporter of the super-chilled fuel, in May were set to drop to their lowest since mid-2018 as state-owned Petronas cut its shipments of spot cargoes.
"In tackling the challenges posed in today's environment of low LNG prices and tightened demand due to the ongoing Covid-19 pandemic, Petronas is optimising its production volume to adapt to the market slowdown," a company spokesperson said in an emailed statement, without elaborating on what that meant for production.
"The current measures in place are expected to continue for the near future, as industries and businesses instil new health and safety regulations and stricter operations brought about by the global pandemic," according to the statement.
Petronas added that it will continue to supply its customers in ongoing contracts as planned and the contracts "will not be affected by any changes in the gas production output".
Coronavirus-induced lockdowns are pummelling gas demand worldwide, pushing Asia's spot prices to record lows and forcing some suppliers to start cutting output.