PETROLIAM Nasional Bhd (Petronas) expects greater contribution from its manufacturing activities, which will generate about RM51bil to the group over the next few years, its president and chief executive officer Tan Sri Hassan Marican said.
Over the past five to seven years, we had invested quite a large sum of money in such facilities as gas, hydro-chemicals and so on. Now the plants have reached their stable state of production and are beginning to give us those revenues. They are also adding value to the various oil and gas chains,'' he said.
So, as we grow these plants, we should expect more from the manufacturing part of our business, particularly in the LNG and gas business.''
LNG production, refining, and petrochemicals are major components of Petronas' business and revenue stream.
Such businesses have also attracted considerable inflows of foreign direct investment.
LNG, Petronas' third largest revenue earner, posted revenues of RM13bil in the year ended March. Japan was Malaysia's largest LNG customer, accounting for 72% of Petronas' total LNG exports.
This was followed by South Korea with 16% and Taiwan with 12%. In terms of market share, Malaysia holds about 49% of Taiwan's LNG market, 25% of Japan's and 21% of South Korea's.
With MNLG Tiga's second train coming onstream in September, Malaysia's LNG production capacity will increase to 23 million tonnes per annum.
This means that Malaysia would have the world's largest production capacity at a single location, giving it the advantage of both operational flexibility and efficiency, the statement said.
Petronas chairman Tan Sri Azizan Zainul Abidin said the petrochemical complexes in Terengganu and Pa0 hang, and the Bintulu gas complex in Sarawak had become the nation's main heavy industry manufacturing centres.
For Petronas, these manufacturing activities are important ingredients of its value-adding activities,'' he said.
Gross sales volume for petrochemicals rose by 30.3% last year, and together with higher prices, revenue from petrochemicals rose 71.2% to RM5.8bil from RM3.4bil.