Malaysia, Turkmenistan to seal hydrocarbons partnership on June 19 as energy security push intensifies

KUALA LUMPUR, June 11 — Malaysia and Turkmenistan are expected to sign a long-term hydrocarbons cooperation agreement on June 19 as part of efforts to strengthen the country’s energy supply chain, said Economy Minister Akmal Nasrullah Mohd Nasir.

He said the government is actively enhancing bilateral and multilateral cooperation, including recent positive developments in energy collaboration between Petronas and Japanese partner JERA Co., Inc., involving the supply of liquefied natural gas (LNG), formalised through a long-term agreement that is expected to benefit both countries.

“This also includes cooperation through the Asia Zero Emission Community (AZEC), Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia), energy cooperation with Australia, as well as a long-term hydrocarbons partnership with Turkmenistan, which is expected to be signed on June 19, 2026,” said Akmal Nasrullah during a briefing on the global supply crisis streamed on the ministry’s Facebook page today.

He said the crisis has tested Malaysia’s economic resilience but at the same time created opportunities for the country to strengthen its long-term resilience.

“With a strong economic foundation, a strategic energy position and data-driven economic management, Malaysia is not only capable of managing global uncertainties but is also well-positioned to move forward with greater confidence,” said Akmal Nasrullah.

He also said the average LNG price rose moderately by 4.6 per cent to US$18.87 per million British thermal units (MMBtu) during the period from June 2 to 6, 2026, from US$18.04 previously.

The movement remained within a manageable range, indicating that the global LNG market remained stable despite geopolitical uncertainties.

However, coal prices increased by 8.2 per cent to US$142.62 per tonne during the period from June 1 to 3, 2026.

“The increase in global coal prices was driven by stronger competition and a surge in demand as international utility providers switched from gas to coal to contain electricity generation costs, as well as higher premiums for coal,” said Akmal Nasrullah.

Brent crude oil spot prices averaged US$99.29 per barrel between June 1 and 5, 2026, down 0.9 per cent from US$100.16 per barrel in the previous week.

Akmal Nasrullah said that the decline was driven by more positive market sentiment, including expectations of higher production from the OPEC+ grouping and the government’s efforts to secure alternative sources of supply. — Bernama