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Malaysia’s days as an energy exporter may be numbered

Malaysia’s fossil-fuel riches fueled decades of growth and saw Petronas’ twin skyscrapers become the symbol of Kuala Lumpur. But as oil fields mature and growing local industries (such as data centers) use more gas, Malaysia is close to becoming a net energy importer.

This has consequences for the global LNG market as well as ordinary Malaysians, who have become accustomed to subsidies paid for by Petronas’ dividends.

LNG now accounts for most of what remains of the country’s positive energy trade balance. Domestic crude production has been declining, increasing reliance on imports to meet refineries’ needs (especially the RAPID megaproject near the Singaporean border).