PETALING JAYA: Petroliam Nasional Bhd (PETRONAS) has announced a temporary shutdown of the Songkhla Export Pipeline in Thailand following an issue identified during a routine inspection.
The pipeline is managed by Trans Thai-Malaysia (Thailand) Ltd (TTM), a joint venture between Thailand’s PTT Public Co Ltd and PETRONAS.
In a statement yesterday, the national oil and gas company said the shutdown is a precautionary measure to protect the integrity of the pipeline and ensure safe operations.
“PETRONAS recognises the impact this may have on the gas supply to customers in Malaysia and Thailand, and proactive measures are being taken to ensure continuity for customers in Malaysia.
“PETRONAS’ integrated supply network provides the flexibility to sustain supply, and the company is working closely with its partners and customers to maintain system stability,” it said.
PETRONAS also said the pipeline will resume operations only once it has been confirmed to be safe to do so.
“We remain focused on upholding the highest standard of safety and operational integrity, while ensuring reliable supply to domestic customers in support of Malaysia’s energy security,” it added.
Separately, Moody’s Ratings assigned a first-time A3 issuer rating to PETRONAS’ international arm, PETRONAS International Corp Ltd (PICL).
Moody’s said the rating outlook is “stable” for PICL.
“PICL’s A3 issuer rating reflects its strategic importance to its parent, PETRONAS (A2 stable).
“This is demonstrated by PICL’s meaningful contribution to the group’s production and earnings, close parental oversight, liquidity integration, and a strong track record of support,” said Moody’s vice-president Rachel Chua.
“It also reflects PICL’s standalone credit strength, which we estimate to be in the mid-to-low Baa range given its international oil and gas operations, scale and cash flow generation capacity,” she added.
PICL serves as the primary vehicle for the group’s oil and gas operations outside Malaysia, spanning exploration and production as well as liquefied natural gas (LNG) marketing and trading.
Moody’s said strategic decisions for the group’s overseas oil and gas activities, including LNG Canada and its joint venture with Eni S.p.A. (A3 stable), are made by PETRONAS and executed by PICL.
“PICL contributes meaningfully to PETRONAS’ overall scale, accounting for more than 20% of the group’s production and assets, as well as more than 40% of reserves in 2025.
“PETRONAS exercises a high degree of oversight and control over PICL, from board composition and senior management appointments to funding and risk management decisions.”
Moody’s noted that PICL has received extensive financial support from PETRONAS through equity injections via non-interest-bearing, perpetual redeemable preference shares (RPS), shareholder loans, as well as guarantees on most of PICL’s external borrowings, including the US$600mil senior unsecured notes issued by PICL’s subsidiary, PETRONAS Energy Canada Ltd.
“As of December 2025, PICL had US$4.7bil of shareholder advances and US$20.6bil of RPS outstanding.” — Agencies
