Malaysia Sees Surge in Gas-Fired Power Generation and Record LNG Exports

In December 2025, Malaysia's natural gas-fired power generation increased by 28.4% year-over-year, while coal-fired generation declined by 4.3%. This shift, supported by a rise in domestic gas output, led to record LNG exports and a reduction in LNG imports.

Insights:
In December 2025, Malaysia experienced a significant shift in its energy landscape, marked by a 28.4% year-over-year increase in natural gas-fired power generation, according to data analyzed by Reuters. This surge in gas-fired output, which accounted for most of a nearly 5% rise in total electricity supplied to Peninsular Malaysia, coincided with a 4.3% decline in coal-fired power generation. The development highlights Malaysia's strategic pivot towards natural gas as a primary energy source, facilitated by an 11.8% growth in domestic gas output, the fastest in three years.
Coal is depicted in this illustration, dated August 10, 2022. REUTERS/Dado Ruvic/Illustration
Coal is depicted in this illustration, dated August 10, 2022. REUTERS/Dado Ruvic/Illustration
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