The International Gas Union (IGU) released its 15^th annual World LNG Report 2024, the world’s most comprehensive public source of information on key developments and trends in the Liquefied Natural Gas (LNG) market. This report contains crucial information on LNG supply and demand dynamics, not just on a global scale and the wider Asia Pacific, but also with a specific focus on Malaysia.

The 2024 World LNG Report highlighted how LNG has become a critical component of the global energy system due to its flexibility efficiency and reliability.  As LNG’s importance continues to grow, decarbonising the LNG value chain is a priority for many stakeholders in the industry. Several proposed projects are undertaking innovative emissions-reducing measures to meet this need by integrating renewable electricity, carbon capture and storage (CCS), partnering to develop e-methane and grow bio-LNG, or liquefied biomethane, which is produced from capturing and upgrading biogas that would have otherwise been emitted from landfills, agricultural waste, or other feedstock.  
 
The following are a few highlights on Malaysia in IGU’s 2024 World LNG Report;     
                                  
• Of the exporting regions, Asia Pacific exported the most in 2023 with a total of 134.80 MT and remained the largest importing region with 155.32 MT, where the inter-regional trade was at 95.0 MT.
• Malaysia retained the fifth-largest exporter, after Russia, Qatar, Australia & the United States.
• Total LNG export from Malaysia in 2023 was 26.75 MT constituting about 7% of the total LNG traded globally.
• The Kasawari gas field in Malaysia with 3.7 MTPA Carbon dioxide (CO2) capacity is listed as one of the LNG-linked CCUS projects, with a carbon capture facility sourcing CO2 from the upstream or liquefaction components of LNG projects as another emissions mitigation measure.
• Globally, Malaysia is highlighted as one of the largest operational liquefaction capacities at 32MTPA among 21 markets operating LNG export facilities.

“As the world moves toward a low emissions future, nations are seeking ways to achieve their climate commitments while keeping energy affordable, available and secure. LNG is a tool that will be critical to providing greater resiliency for rapidly changing energy systems around the world and it will have an essential role in mitigating the inherent risk of uncertainty through that process,” said Li Yalan, President of IGU, in the report.

MGA, as the voice of the Malaysian gas industry, recognises the importance of LNG for the nation's energy security. 

“The report comes at a critical time when global energy security is paramount. The ongoing energy crisis has highlighted the need for nations to diversify their energy sources and ensure a stable and reliable supply. This information will be crucial for policymakers and industry stakeholders as they work towards ensuring a stable and sustainable energy future for the region and Malaysia; in particular.” Abdul Aziz Othman, President of the Malaysian Gas Association (MGA), commented.

MGA recognise the crucial role LNG will play in Malaysia's energy transition roadmap, which anticipates gas demand to increase from 43% to 56% by 2050. This projected rise underscores the need for our industry to be fully prepared to meet these heightened expectations. This requires a multi-pronged approach, focusing on ensuring sufficient gas availability, developing & maintaining infrastructure readiness for smooth distribution and creating a conducive market environment.  This; entails the formulation and implementation of pragmatic, clear and consistent policies to attract investments and to grow the gas industry.

Whilst we must acknowledge that domestic gas production is declining, the potential arrival of more LNG players presents a welcome opportunity to enhance Malaysia’s gas supply security. Therefore, it is pertinent that policymakers formulate and establish the appropriate framework, policies and action plan to ensure that the availability and security of gas supply is attained. This is also important to note that industry players need to play an active role in ensuring the security of gas supply to the country.

“Moving forward, MGA strongly supports the government's aspiration for a fully liberalised gas market, including the power sector. We believe such a move will enhance energy supply security and foster a more efficient market environment, ultimately benefiting Malaysian consumers.” Abdul Aziz added. 

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