Qatar will supply two million tons per annum (MTPA) of LNG to Malaysia from 2028. (Image source: QatarEnergy)

QatarEnergy has signed a 20-year Sales and Purchase Agreement (SPA) with PETRONAS for the supply of two million tons per annum (MTPA) of LNG from Qatar to Malaysia from 2028

The agreement was signed by His Excellency Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the president and CEO of QatarEnergy, and YM Tan Sri Tengku Muhammad Taufik Tengku Kamadjaja Aziz, the president & Group CEO of PETRONAS during a ceremony held in Doha on the sidelines of the 21st International Conference & Exhibition on Liquefied Natural Gas (LNG2026).

Under the SPA, PLL will offtake up to two million tonnes per annum (MTPA) of LNG from QatarEnergy over a period of 20 years. The long-term volumes secured through this agreement will play a critical role in reinforcing Malaysia’s energy supply security, ensuring a stable and reliable LNG source to meet the rapidly rising energy demand in Malaysia, driven by industrial growth and a surge in data centre development. It is the first long-term LNG SPA between QatarEnergy and PETRONAS.

According to a PETRONAS statement, the collaboration enhances PETRONAS’ portfolio resilience amid an evolving global energy landscape, while supporting the nation’s economic development and energy transition priorities. It also reflects the shared commitment between PETRONAS and QatarEnergy to deepen cooperation across the LNG value chain towards a future-ready and sustainable gas portfolio.

His Excellency Minister Al-Kaabi said: "QatarEnergy is pleased to enter into this new LNG SPA with PETRONAS, which highlights our continued commitment to support the growing energy needs of Malaysia as well as our customers across the globe.”

PETRONAS president and Group CEO, Tan Sri Tengku Muhammad Taufik said, "This agreement marks an important milestone for PETRONAS in bolstering energy security for those we serve. The supply of LNG through partnerships with industry leading partners such as QatarEnergy complements the cargoes from our LNG heartlands in Malaysia and Canada, diversifying our supply nodes even as PETRONAS unlocks new avenues to derive greater value and efficiency."

This agreement reflects QatarEnergy’s ongoing dedication to strengthening global partnerships, promoting cleaner energy solutions, and supporting the economic development goals of key markets worldwide.

The agreement follows hot on the heels of the signing of a 27-year Sales and Purchase Agreement (SPA) with JERA, Japan’s largest power generation company, for the supply of up to three million tons per annum (MTPA) of LNG from Qatar to Japan, with deliveries starting in 2028. QatarEnergy also signed a MoU with Japan’s Ministry of Economy, Trade & Industry (METI) and JERA to supply Japan with additional LNG during emergency situations.

New LNG supply coming onstream will drive demand for shipping capacity. (Image source: Adobe Stock)

The global LNG shipping industry will require over 650 new LNG carriers by 2040, with significant new LNG supply set to come onstream, according to analysis by Wood Mackenzie

The Global LNG shipping outlook: form an ordering queue analysis examined recent LNG trade and shipping dynamics and the long-term requirement for newbuild LNG carriers.

Shipping capacity gap

New build investment was limited in 2025, according to the report findings. While strong deliveries are expected this year, the market outlook shifts from 2027 onwards. New large-scale LNG supply coming onstream this decade, supported by a record year of LNG supply final investment decisions in 2025, will drive demand for shipping capacity. Much of the new capacity is in the US, where LNG trades on a Free On Board basis. This will increase the proportion of LNG cargoes that react to fluctuations in global gas prices.

The result will be less direct LNG trade patterns, creating a more inefficient market that requires additional shipping capacity. More than 650 new LNG carriers (174,000m3 equivalent) are required by 2040 based on Wood Mackenzie trade and scrapping forecasts.

Build times are a complicating factor, with LNG carriers taking around 2.5-3 years to build at the moment, according to Fraser Carson, principal analyst, Global LNG Assets at Wood Mackenzie. "If players have already contracted LNG offtake to start before the end of the decade, the decision around placing a newbuild order needs to be made now."

Regulatory and fleet dynamics

Another factor accelerating fleet turnover are new maritime emissions regulations . The European Commission brought maritime CO2 emissions into its Emissions Trading System in stages between 2021 and 2024, making older, less efficient vessels increasingly uneconomic to operate globally. Average scrapping age has dropped from around 40 years historically to 26 years. Wood Mackenzie forecasts 73 vessels scrapped over the next five years, compared with 55 over the previous 11.

Carson said, "Vessels are exiting the LNG fleet more quickly and earlier than ever before, and the capacity lost will need to be replaced. We expect to see an upturn in ordering activity during 2026."

Mohamed Daoud, director and industry practice lead for Financial Crime and Third-Party Risk Compliance, Middle East and South Asia at Moody's. (Image source: Moody's)

In an article for Oil Review Middle East, Mohamed Daoud, director and Industry Practice lead for Financial Crime and Third-Party Risk Compliance, Middle East and South Asia at Moody's argues that Interconnected threats make a strong case for unified risk management to help protect organisations and their extended networks

Threats to the energy and utilities sector come from many sources, including economic volatility, geopolitics, regulatory changes, and the proliferation of digital systems, and are increasingly interconnected. Operational threats are rarely isolated. Instead, they are deeply interwoven, with disruptions in one area rapidly cascading across organisations and their extended networks.

The complexity of third-party relationships intensifies operational risk because suppliers, contractors, and intermediaries often have access to internal systems and sensitive data, introducing additional operational, financial, and cybersecurity threats. Fragmented risk management systems often compound these difficulties.

A unified approach to risk management may identify, anticipate and mitigate these dangers more quickly.

Without a unified view, energy firms may struggle to assess interdependencies and anticipate disruptions that could jeopardise business continuity. The interconnectedness of modern operations means a single disruption - from a vendor, data center, or logistics partner - can trigger immediate and widespread consequences.

Unified risk management consolidates risk data from disparate sources into a single, integrated platform. This approach enables continuous monitoring, automated alerts, and real-time decision-making across key risk dimensions such as financial health, sanctions exposure, cybersecurity threats, and vulnerability to extreme weather events. By embedding predictive analytics, organisations can detect early warning signals - such as financial distress in a supplier, geopolitical instability, or regulatory changes - and respond proactively.

This approach helps energy and utilities companies to protect themselves in a landscape defined by speed, interdependence, and unpredictability. By consolidating risk data, leveraging advanced technology, and fostering strong governance, organisations can transform risk oversight from a fragmented, reactive process into a pivotal, integrated discipline that safeguards business continuity and supports long-term success.

You can read the article in the latest edition of Oil Review Middle East here

The SLB solutions are expected to increase recovery rates and extend the productive life of Block-6 assets. (Image source: SLB)

SLB has been awarded two five-year contracts by Petroleum Development Oman (PDO) to supply wellheads and artificial lift technologies for operations in Block-6, Oman’s largest oil and gas concession which contains over 75% of Oman's remaining crude oil reserves

The contracts include the provision of low-pressure, high-pressure, and thermal wellheads, as well as electric submersible pumps (ESPs) and progressive cavity pumps (PCPs). These solutions are expected to increase recovery rates and extend the productive life of Block-6 assets. The contracts will involve expanding local manufacturing capabilities and introducing made-in-Oman gate valve production within six months of commencement.

Wellheads will be produced at SLB’s Rusayl production centre, and ESPs will be assembled at its Nizwa assembly, repair, and testing centre, supporting hundreds of Omani employees. SLB will deploy advanced technologies including the 15k SOLIDrill modular compact wellhead system, ESP surveillance systems, and ESP permanent magnet motors, which reduce power consumption and enhance sustainability.

The contracts align with PDO’s ICV programme, which is a strong priority for PDO and supports the country’s industrial diversification under Oman Vision 2040. It has played a vital role in expanding local manufacturing capabilities, strengthening local supply chains, upskilling the workforce and creating jobs for Omani nationals.

“These awards reflect our deep commitment to Oman’s energy future and advancing in-country value through local manufacturing and talent development,” said Jesus Lamas, president, Middle East and North Africa, SLB. “By producing more equipment in country and investing in Omani expertise, we are ensuring that PDO’s strategic goals are met with sustainable, locally driven approaches. Our focus is on delivering innovative wellhead and artificial lift solutions that drive production efficiency and maximise recovery. Through our ongoing investment in advanced technologies and tailored services, we support our customers’ production and recovery goals with capabilities designed to meet their evolving operational needs.”

Middle East and Asia is a core region for SLB’s business, accounting for US$12,218mn of its total US$35,708mn total revenues in 2025. In 2025, SLB reported higher activity in Oman along with East Asia, Iraq, United Arab Emirates, and India. Strong fourth quarter performance in the Middle East and Asia saw fourth quarter revenue increasing sequentially by 8% in the region due to higher offshore activity and strong year-end product and digital sales. The company is optimistic about prospects in the region in 2026.

“As we move into 2026, we believe that the headwinds we experienced in key regions in 2025 are behind us. In particular, we expect rig activity in the Middle East to increase compared to today’s level, and our footprint in the region puts us in a strong position to benefit from this recovery,” SLB CEO Olivier Le Peuch said.