Malaysia commits 150bn USD for technology and LNG purchases from the United States

Malaysia plans to invest up to 150bn USD over five years in American technological equipment and liquefied natural gas as part of an agreement aimed at adjusting trade flows and easing customs duties.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Malaysia is set to allocate up to 150bn USD over five years for the acquisition of equipment from American companies, mainly targeting the semiconductor, aerospace, and data centre sectors. This strategy follows a bilateral trade agreement negotiated after the imposition of a new 19% tariff on Malaysian imports to the United States, effective from August 8, replacing the initially announced rate of 25%.

Strengthening energy and trade exchanges

Petroliam Nasional Berhad, the state-owned energy company, plans annual purchases of liquefied natural gas worth 3.4bn USD from American suppliers. This decision comes as the United States recorded a trade deficit of 24.8bn USD with Malaysia in 2024, according to official data.

In parallel, Malaysia has committed to investing 70bn USD in cross-border projects in the United States over five years, with the goal of reducing trade imbalances and facilitating access to American markets for its industries.

Tariff relief and amended regulatory obligations

Under the agreement, Malaysia has agreed to reduce or eliminate customs duties on 98.4% of American imports and to ease several non-tariff barriers. Among the enacted measures, the requirement for American digital platforms and cloud providers to allocate a portion of their local revenue to a public fund has been removed.

Certain Malaysian products, such as pharmaceuticals and semiconductors, now benefit from customs exemptions for exports to the United States. Additional discussions are underway to include more products, including cocoa, rubber, and palm oil.

Tariff outlook for the semiconductor sector

The Malaysian semiconductor sector may, however, remain subject to potential tariff increases decided by American authorities for national security reasons. The Ministry of International Trade and Industry has indicated that the industry must remain alert to any future regulatory developments.

The Minister of International Trade and Industry, Tengku Zafrul Aziz, told parliament that the negotiations had resulted in what is considered balanced conditions for both parties, while urging the industrial sector to prepare for possible changes in American regulations.

Argentina aims to boost gas sales to Brazil by 2030, but high transit fees imposed by Bolivia require significant public investment to secure alternative routes.
The accelerated arrival of Russian cargoes in China has lowered Asian spot LNG prices, but traffic is set to slow with the seasonal closure of the Northern Sea Route.
Nigeria and Libya have initiated technical discussions on a new pipeline project to transport Nigerian gas to Europe through the Mediterranean network.
Shipments of liquefied natural gas and higher pipeline flows strengthen China’s gas optionality, while testing the sanctions regime and reshaping price–volume trade-offs for the next decade.
The Canadian government aims to reduce approval delays for strategic projects, including liquefied natural gas, nuclear and mining operations, amid growing trade tensions with the United States.
Liquefied natural gas exports in sub-Saharan Africa will reach 98 bcm by 2034, driven by Nigeria, Mozambique, and the entry of new regional producers.
Backed by an ambitious public investment plan, Angola is betting on gas to offset declining oil output, but the Angola LNG plant in Soyo continues to face operational constraints.
Finnish President Alexander Stubb denounced fossil fuel imports from Russia by Hungary and Slovakia as the EU prepares its 19th sanctions package against Moscow.
Japanese giant JERA has signed a letter of intent to purchase one million tonnes of LNG per year from Alaska, as part of a strategic energy agreement with the United States.
US-based Chevron has submitted a bid with HelleniQ Energy to explore four offshore blocks south of Crete, marking a new strategic step in gas exploration in the Eastern Mediterranean.
GTT has been selected by Samsung Heavy Industries to design cryogenic tanks for a floating natural gas liquefaction unit, scheduled for deployment at an offshore site in Africa.
A consortium led by BlackRock is in talks to raise up to $10.3 billion to finance a gas infrastructure deal with Aramco, including a dual-tranche loan structure and potential sukuk issuance.
TotalEnergies commits to Train 4 of the Rio Grande LNG project in Texas, consolidating its position in liquefied natural gas with a 10% direct stake and a 1.5 Mtpa offtake agreement.
US producer EQT has secured a twenty-year liquefied natural gas supply contract with Commonwealth LNG, tied to a Gulf Coast terminal under development.
Monkey Island LNG has awarded McDermott the design of a gas terminal with a potential capacity of 26 MTPA, using a modular format to increase on-site output density and reduce execution risks.
The Voskhod and Zarya vessels, targeted by Western sanctions, departed China’s Beihai terminal after potentially offloading liquefied natural gas from the Arctic LNG 2 project.
ADNOC Gas will join the FTSE Emerging Index on September 22, potentially unlocking up to $250mn in liquidity, according to market projections.
Norwegian company BlueNord has revised downward its production forecasts for the Tyra gas field for the third quarter, following unplanned outages and more impactful maintenance than anticipated.
Monkey Island LNG adopts ConocoPhillips' Optimized Cascade® process for its 26 MTPA terminal in Louisiana, establishing a technology partnership focused on operational efficiency and competitive gas export pricing.
NextDecade has signed a liquefied natural gas supply agreement with EQT for 1.5 million tonnes annually from Rio Grande LNG Train 5, pending a final investment decision.

Log in to read this article

You'll also have access to a selection of our best content.