In line with the Malaysian government’s commitment to increase the nation’s acceptance of natural gas market reforms and liberalisation, the Malaysian Gas Association (MGA) recently organised a day-long engagement programme, “Insights into the Malaysian Gas Industry”, specifically for ministries and government agencies.
During the programme, speakers highlighted the significant contribution made by the natural gas industry to Malaysia’s socioeconomic progress.
In 2016, the industry contributed 14.5 per cent to the country’s total GDP and attracted investments amounting RM11.7 billion in 2017.
“Malaysia is currently the world’s third largest exporter of liquefied natural gas in 2017 with the sector expected to grow robustly right through to 2030.
“This also translates into greater opportunities in the Malaysian market for new and existing players to capitalise on the expanding gas value chain,” said MGA Council Member, Zahid Osman.
“Natural gas also allows for integrated innovative solutions that can secure the nation’s long-term energy mix at significantly lower environmental and economic cost, making it the perfect partner for renewable energy,” he added.
Natural gas can play an effective catalytic role in increasing Malaysia’s renewable energy capacity by 20 per cent and achieving 8 per cent savings through energy efficiency by adopting technologies such as cogeneration.
Additionally, given the versatility of the gas infrastructure in accommodating a renewable resource, industry players are also exploring options to integrate biogas into the network.
MGA has voiced a need for a comprehensive Natural Gas Roadmap to be developed in collaboration with stakeholders from across the industry.
The Roadmap will actualise the full potential of the industry, spur the low carbon economy and drive the nation’s socio-economic progress, with the association keen to contribute its experience and expertise to develop the blueprint.
With collaboration from the entire industry, the challenges across the entire value chain, obstacles in realising market liberalisation and the difficulties in managing industry resources can be tackled effectively in order to promote Malaysia’s long-term energy security,” added Zahid.
“I am confident that today’s session will mark the starting point of an industry-wide collaboration that will result in deeper understanding, greater utilisation and common ground for all to collectively chart out the future of Malaysia’s natural gas industry,” he said.
Over the years, MGA has been collaborating with various government and industry stakeholders in developing legislations and policies, including formulating the Energy Efficiency & Conservation Act (EECA) and being a part of the Thermal Energy Regulation committee to promote an expanded role for co-generation in Malaysia.
MGA will continue to host similar dialogues and discussions with various stakeholders to enhance awareness on the benefits of natural gas, increase acceptance on market liberalisation and facilitate the growth of the industry to support Malaysia’s socio-economic progress.