What is driving Malaysia's record power demand and how is the country responding in terms of fuel mix?

Malaysia's record power demand is driven by a searing heatwave and the rapid growth of energy-intensive data centres. In response, the country is sharply increasing gas-fired power generation — which surged 50.5% year-on-year to a record 5.54 TWh in April — while coal-fired output fell at its steepest pace in over three years to 6.67 TWh; from May 1–27, gas-fired power rose another 28.3%, and coal-fired generation dropped 4.8%.

How is Malaysia balancing rising domestic gas demand with its role as a major LNG exporter?

Malaysia is meeting surging domestic gas demand primarily through its offshore gas fields — shipping 446,000 metric tons of LNG to peninsular Malaysia this year, nearly three times the 150,000 tons shipped in all of 2025 — while simultaneously boosting LNG exports 14.6% annually to 12.81 million tons year-to-date, according to Kpler data; Petronas states domestic gas needs are met via the peninsular gas utilisation system (sourcing offshore gas) and supplemented by LNG imports, though it provided no specifics.

Malaysia steps on gas, cuts coal use as power demand surges to record

May 27, 2026

Malaysia surged gas-fired power generation by 50.5% in April to meet record demand from heatwaves and data centers, reducing coal reliance. Petronas plans significant LNG imports by the end of the decade to sustain this growing energy consumption.

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