Malaysian state energy company Petronas is in direct talks with Philippine buyers over liquefied natural gas supplies, The Philippine Star reported on September 19. The discussions come as the Philippines contends with tight power supply and turbulence in global energy markets caused by conflict in the Middle East.

LNG has become central to Manila's plans to reduce reliance on coal-fired generation, which still dominates the country's power mix. In the central and southern areas of the Philippines, the shutdown of a number of large but ageing coal plants has led to rotating blackouts and has also seen electricity prices climbing.

Petronas LNG Ltd Chief Executive Officer Rosdi Ab Rahman said on the sidelines of last week's Gastech 2026 conference in Bangkok that the firm was working to engage with some of the players in the Philippines.

He did not name the companies involved, saying only that a lot of discussion is ongoing now, Rosdi Ab Rahman told AP, as talks over possible contracting arrangements continue.

According to sources, Petronas has already sent spot LNG cargoes to Manila from its facility in Bintulu, in Sarawak. 

The company is positioning its geographic proximity as its main selling point across Southeast Asia. Ab Rahman acknowledged that Petronas could not cover the region's entire LNG demand while supply disruptions persist in the Middle East, but said the company was working to fill part of the shortfall by accelerating its own upstream production and investing in a more modern shipping fleet.

Petronas has delivered more than 200 LNG cargoes across the region since 2017 and counts 34 buyers and 87 active contracts, according to the company.