While Europe is the main consumption region for LNG as a bunker fuel, demand in Singapore and Malaysia, already global oil bunker fuel hubs, is also expected to increase, Ramli said during the virtual Platts APPEC 2020 conference.
"Malaysia and Singapore share the same marine traffic. There are more than 80,000 transits in the Malacca Strait alone every year, so this is a huge market to serve," he said, referring to the waterway between Malaysia and the Indonesian island of Sumatra that is a key shipping lane.
As LNG production capacity builds globally, the availability of the super-chilled fuel will continue to keep prices low and competitive against other fuels, he said.
Petronas plans to use the tanker Avenir Advantage to provide LNG bunkering services in Malaysia once the ship completes its final commissioning exercise in China.
Petronas has been exploring ways to promote LNG as a marine fuel at a time when spot prices have been depressed by new capacity from the United States and Australia. Malaysia is the world's fourth-largest LNG exporter.
(Reporting by Jessica Jaganathan; Editing by Christian Schmollinger) (([email protected]; +65 6870 3822; Reuters Messaging: [email protected]; Twitter: https://twitter.com/j3ssi3))