During a recent industry engagement on the country’s journey towards a liberalised natural gas market, the Malaysian Gas Association (MGA) urged stakeholders from across the industry to work together to formulate a comprehensive Natural Gas Roadmap to drive the nation’s socio-economic progress by actualising the full potential of Malaysia’s natural gas industry and spurring the low carbon economy.
The engagement included a panel discussion among key industry leaders on the country’s current landscape of the gas industry and what needs to be done to further spur growth, particularly in terms of crafting well-defined policies and frameworks.
MGA President, Hazli Sham Kassim said, “MGA, the lead advocate for the nation’s natural gas industry, commends the government’s commitment towards market liberalisation including the continued alignment of domestic gas prices with the international markets, to create a competitive and dynamic economic environment.”
“Globally it has been proven time and again that artificial pricing distorts the market which escalates regulatory and commercial risks to gas players, discouraging further interest and investments in the industry. It is therefore not sustainable for the industry, not sustainable for Malaysia’s energy security and not sustainable for our collective future,” he added.
MGA strongly advocates a greater role for natural gas in ensuring Malaysia achieves its long-term vision of becoming a carbon neutral economy and meeting its 21 st Conference of Parties pledge. However, to fulfil the potential of natural gas, considerable and timely investments across the entire value chain from sourcing gas upstream, regasification terminals and delivery through pipelines must be made.
Elaborating further, Hazli said “Given the tremendous potential of the industry and the fact that natural gas is the cleanest burning fossil fuel, there is a need for a comprehensive Natural Gas Roadmap in consensus with relevant stakeholders that will factor in opportunities and challenges across the entire value chain, clarify the Third Party Access System, promoting efficient allocation and utilisation of resources to ensure Malaysia’s long-term energy security.”
“Concurrently, I urge industry users to boost their operational efficiency and play their part to meet the country's enviro-economic goals by continually upgrading and updating technology solutions. This will enable industries to optimise fuel consumption, mitigate particulate emissions and reduce overall operations cost,” he concluded.
MGA has continually engaged with various government and industry players in developing legislation as well as policies, and is calling for co-generation to be included in the Energy Efficiency & Conservation Act (EECA), currently being drafted and scheduled to be tabled at the end of this year. As the voice of the industry, MGA is keen to contribute its experience and expertise in drafting the Roadmap in collaboration with all relevant stakeholders.
Over the past three decades, MGA has played a prominent role in promoting engagement, discourse and dialogue to drive a vibrant gas industry and strongly believes that the Natural Gas Roadmap will be key to unlock the true potential of the industry and contribute towards Malaysia’s socio-economic progress.
For more information on MGA and natural gas market liberalisation, please visit www.malaysiangas.com