LNG: Petronas to Decommission Sabah Sarawak Gas Pipeline Before End 2027

Jan-30 14:32

Petronas is planning to decommission its Sabah Sarawak Gas pipeline before the end of 2027, Upstream reports.

  • The 512km SSG pipeline has a design capacity of 750m cfd.
  • It carries gas produced at fields offshore Sabah to Sarawak as feedstock for the Petronas LNG Complex at Bintulu.
  • The pipeline has faced a series of incidents including leaks and fires since its start-up in 2014.
  • Part of the pipeline has been shut-in since August 2023 after force majeure was declared on supplies to MLNG Dua, part of the Bintulu LNG complex.
  • Upon the decommissioning of the pipeline, Sabah could feasibly retain its gas output as feedstock for the 2mtpa Sabah FLNG project, which is currently under construction and expected to start-up in the second half of 2027.

Historical bullets

STIR FUTURES: BLOCK: Red Dec'25 SOFR

Dec-31 14:23
  • 4,000 SFRZ5 96.08 (+0.020), post-time bid going into the cross at 0918:29ET, appears to be a sale - though futures continue to rise, the contract trades 96.09 last (+0.030).

STIR FUTURES: BLOCK: Jun'25 SOFR 1Y Bundle

Dec-31 14:10

Total 6,000 SFRM5 1Y bundles (SFRM5-SFRH6) from 0857ET to 0903ET, 4,000 crossed +0.015, 2,000 +0.010. Most likely swap-tied selling with spds running wider in the short end.

US TSYS: Post House Price Data React

Dec-31 14:04
  • Treasury futures holding mildly higher levels - little to no reaction to in-line FHFA housing price & slightly higher than expected S&P CoreLogic data.
  • Futures had already pared overnight gains since the top of the hour, the Mar'25 10Y contract currently trades 108-31.5 (+.5), curves off earlier lows: 2s10s +1.041 at 29.924, 5s30s -.316 at 38.559.