Petroliam Nasional Bhd (PETRONAS) has temporarily shut down the Songkhla Export Pipeline in Thailand following the detection of an issue during a routine inspection. The pipeline, operated by Trans Thai-Malaysia (Thailand) Ltd (TTM)—a joint venture between Thailand’s PTT Public Co Ltd and PETRONAS—is currently offline as a precautionary measure to protect its integrity and ensure safety.

In a statement issued yesterday, PETRONAS emphasized the shutdown is intended to maintain safe operations. The company acknowledged the potential impact on gas supplies for customers in both Malaysia and Thailand but assured that steps are underway to minimize disruption, particularly for Malaysian consumers. PETRONAS highlighted the flexibility of its integrated supply network, which allows it to adapt and sustain gas deliveries despite the temporary closure. The pipeline will only resume operations once safety assessments confirm it is secure to do so.

“This action reflects PETRONAS’ commitment to the highest operational safety and integrity standards while ensuring reliable energy supply in support of Malaysia’s energy security,” the statement added.

Separately, Moody’s Investors Service assigned an A3 issuer rating to PETRONAS International Corp Ltd (PICL), marking the first rating given to the company. PICL is PETRONAS’ international subsidiary responsible for its overseas oil and gas operations, including exploration, production, and liquefied natural gas (LNG) marketing and trading.

Moody’s maintained a stable outlook on PICL and cited its strategic importance to PETRONAS, which holds an A2 stable rating. Rachel Chua, vice president at Moody’s, noted that PICL plays a significant role in the group’s production and earnings, accounting for over 20% of PETRONAS’ total production and assets, as well as more than 40% of its reserves projected for 2025. She also highlighted the strong parental oversight and integrated liquidity management that contribute to PICL’s credit strength.

The rating agency assessed PICL’s standalone credit quality in the mid-to-low Baa range, reflecting its scale, cash flow generation, and international operations. It also acknowledged the extensive financial support provided by PETRONAS, including equity injections through non-interest-bearing perpetual redeemable preference shares, shareholder loans, and guarantees covering most of PICL’s external debt. As of December 2025, PICL had US$4.7 billion in shareholder advances and US$20.6 billion in outstanding preference shares.

Moody’s further noted that strategic decisions for PETRONAS’ global operations, such as the LNG Canada project and the joint venture with Eni S.p.A., are directed by PETRONAS and executed by PICL, underscoring the subsidiary’s integral role in the group’s international business.