The global energy market has seen a revival of the LNG sector in recent months. Towards the end of last year, a litany of companies reached final investment decisions on a number of new projects that exemplify the international sentiment in the gas and LNG sector. South America had an exceedingly challenging 2025, with political upheaval in Brazil, Argentina’s continued economic crisis, and the region overall being subjected to problems. However, there is always a silver lining as Petronas has targeted a 2026 final investment decision on a new South American LNG venture.
Petronas has big plans for the Suriname LNG industry in 2026
PETRONAS, Malaysia’s state-owned energy company with operations all over the world, has stated its ambition to reach a final investment decision on a new and potentially market-shaking LNG project in the South American nation of Suriname. The name might not be familiar to some, but as with most South American nations, Suriname has vast natural resources waiting to be unearthed.
The Suriname regulator has confirmed the commerciality of Petronas’ Sloanea-1 gas discovery, and has paved the path towards a final investment decision for the Malaysian energy major in 2026. The nation’s regulator, Staatsolie, has noted that Petronas will now need to submit a development plan for approval from the government in order for the projects to move forward.
A new LNG discovery was made in the South American nation last year in November
Specifically, on November 11, a new gas discovery was made in the Petronas-operated Block 52 offshore of the South American nation. In a statement released not long after the discovery was made, Staatsolie said it approved delineation of the commercial field. It subsequently signed its “declaration of commerciality” for the project.
With the process moving forward, Petronas expects an FID to be made this year
Following the approval of the national regulator, Petronas can now begin the process of initiating the first phase of working out the details of the development plan. The firm is eyeing a 2026 FID and expects gas to flow from the new project by 2030, at the earliest. The 4,749-square-kilometre Block 52 is majority owned by the Malaysian energy operator, while Staatsolie holds the remaning 20%.
The new development plan selected by Petronas aims to construct several necessary infrastructures, including but not limited to gas development wells, subsea infrastructure, and a floating liquefied natural gas vessel, or an FLNG for short. It has previously been reported that Petronas is conducting studies to evaluate the viability of deploying an FLNG approximately 120 kilometres from shore in water depths of 450 metres.
Staatsolie and Petronas are building on the existing relationship between them
In 2013, the Malaysian energy company and Suriname’s national regulator signed a production sharing contract for Block 52, and since then, as many as three new discoveries have been made on the block, namely Sloanea-1, Roystonea-1, and Fusaea-1. Other South American nations are also reaching into the energy market to bring on board new partners for planned projects, such as Argentina.
Petronas’ grip on the Suriname energy market comes as another energy major pulls out
Notably, ExxonMobil withdrew from Block 52 in 2024, paving the way for the Malaysian energy major to set up operations in the block. The fact that Petronas is eyeing a final investment decision points to the unexpected revival of the LNG sector following the recent calls to diversify the international energy market. The boom of LNG production across the world has been evident to anyone with eyes, as Conrad Asia is aiming to move forward on its own final investment decision for a new Indonesian LNG project in the near future. The LNG sector is growing at an astonishing rate.
