Malaysia's Coal Imports Soar as LNG Exports Rise, Despite Emissions Concerns

Malaysia is boosting coal imports to increase its LNG exports, with a record 20.9 million tons imported in the first half of the year, accounting for 60% of electricity output. The surge in coal imports is linked to Malaysia's appetite for higher LNG exports, resulting in increased carbon dioxide emissions from power generation. Petronas, Malaysia's state-owned energy company, has inked a deal with Australia's Woodside Energy for the delivery of 1 million tons of LNG annually from 2028. Despite a decline in local gas production, Malaysia will remain a net exporter of LNG until the 2040s, with coal imports expected to continue due to their lower cost compared to LNG exports.