PETROLIAM Nasional Bhd (Petronas) sees softer demand for its liquefied natural gas (LNG) business due to the Covid-19 outbreak, president and group chief executive officer Wan Zulkiflee Wan Ariffin said today.

“In general, demand has softened because of China,” he said, referring to the country worst affected by the virus outbreak and also its epicentre, where more than 2,600 have died and a further 77,700 are infected.

China buyers account for about 6% of the group’s revenue, Wan Zulkiflee said when announcing the group’s 2019 financial results today.

Aside from Petronas LNG Ltd, its other subsidiary, Petronas Chemicals Group Bhd has also been affected.

Wan Zulkiflee said that the sooner the situation abates, the better for demand to recover.

“This is a black swan event and the whole industry was not prepared for this. It is not only oil and gas, I think it impacts the whole supply chain,” he said.

He added that it is crucial for Petronas to have a resilient business to withstand such situations.

“This is not the first time the oil and gas industry has had to go through this kind of price volatility,” he said.

Petronas has also put in preventive measures in place to protect the health of its staff, he added.

This includes temperature screenings before offshore staff board a vessel or helicopter, and quarantine for those returning from China. – February 26, 2020.