Brunei LNG reported an “operational incident” at its site, accompanied by visible flaring and increased noise, according to an announcement posted on social media. The company quickly clarified that the situation was under control, without risk to surrounding populations or the environment.
Sources close to the company confirmed that the incident was neither the result of an explosion nor a fire. Brunei LNG’s internal teams are currently working to restore normal operations. No injuries or property damage were reported.
Limited impact on the Asian market
Singapore-based traders said end-users have not received any notification of changes in liquefied natural gas (LNG) deliveries. As Brunei LNG is not an active player in the spot market, its current contractual exports limit the immediate impact on regional supply.
Experts note, however, that a continuation of the incident could complicate the supply of contract buyers, particularly during periods of high winter demand. In October, Brunei LNG shipped six cargoes, insufficient to significantly disrupt markets, but critical for some importers in the long term.
A strategic supplier for Japan
Brunei LNG exports mainly to Japan, which received 2.225 million tonnes of LNG from Brunei between January and September 2024, representing 4.5% of the country’s total imports. These strategic deliveries highlight the importance of trade relations between the two nations.
Major Japanese players, such as JERA and Japex (Japan Petroleum Exploration), are currently assessing the possible repercussions of this incident. JERA said it did not see any immediate disruptions, while Japex continues to analyze the situation. For their part, Osaka Gas and Tokyo Gas ended their long-term contracts with Brunei LNG in March 2023, marking a turning point in commercial flows.
Proactive incident management
In its official communication, Brunei LNG assured that the flaring and noises observed were controlled consequences of the incident. The company reiterated that these protests pose no threat to the safety of residents, employees or infrastructure.
This proactive management, combined with robust security measures, aims to minimize any future disruption, as the Asian market remains attentive to the evolving situation.
Related News :