KUALA LUMPUR (Sept 18): Malaysia may have to consider raising imports of liquefied natural gas (LNG) to meet energy demands even as the country is one of the world’s top exporters of the commodity.

The plan is to retire its coal-fired power plants and there is limited room to build new hydroelectric dams, particularly in Peninsular Malaysia, Minister of Natural Resources and Environmental Sustainability Nik Nazmi Nik Ahmad said in a televised interview with Bloomberg.

“So that bridging role will be played by LNG imports, for us to meet our energy demands,” Nik Nazmi said.

Malaysia, Asia’s biggest LNG exporter, currently relies on fossil fuels including coal and natural gas for about 80% of its electricity. Hydropower provides most of the renewable energy while solar and wind account for less than 5% of the share.

The government has pledged to halve the number of coal-fired power plants by 2035, and completely retire them by 2044 as part of its energy transition and climate change policy.

Malaysia has gas import infrastructure but may need more terminals and facilities, Nik Nazmi was cited as saying by Bloomberg in a separate interview.

The government is also studying nuclear energy for round-the-clock generation, which “will take time”, but has ruled out building more coal capacity, he added.

Malaysia is the world’s fifth-biggest LNG exporter, shipping 26.75 million tonnes in 2023 and accounted for about 7% of the total LNG traded globally, according to the International Gas Union’s latest annual report released in June.