ENERGY FORUM 2011 : Energy Sector Propelling Malaysia Economic Transformation Programme, 12th July 2011, Sheraton Hotel, Kuala Lumpur

22 July 2011

The Energy Forum has been organized to address energy developments and issues which are of great interest and would wield influential impact in one way or another on commercial businesses as well as on the daily life of the ordinary layman. Such Forum could serve to provide a conducive platform for stakeholders i.e. gas suppliers, consumers, planners and policy makers of the industry to meet and exchange views with the aim to contribute positively to the development, promotion and effective and efficient utilization of our gas resources while also to sustain and generate beneficial and value-added contributions to ‘move’ the gas industry in Malaysia to greater heights.

This year’s Forum, as a platform, has successfully created useful dialogue and exchange of views on important matters relating to energy in Malaysia which brought together senior Government officials, Regulators and business executive who highlighted some of the emerging issues, challenges and opportunities that would help us map out strategic direction and way forward towards a more Sustainable energy future for Malaysia.

This enriching and productive Forum was attended by more than 200 attendees comprising of delegates, speakers and invited guests.

The following distinguished speakers were invited to share their views during the conference:
•“Fuelling Transformation” by Dr. Mohd Emir Mavani Abdullah, Director, NKEA (OGE & Financial Services), PEMANDU.
•“Energy Policy Shift and Key Energy Projects towards Securing a Sustainable Energy Future for Malaysia” by Dr Kamariah Noruddin, Director, Energy Section, Economic Planning Unit, Prime Minister’s Department.
•“Regional Economic & Energy Outlook: Perspectives on Malaysia” by Mr. Ben Cahill, Manager, Markets & Country Strategies Group, PFC Energy.
•“Securing a Sustainable Energy (Oil & Gas) Future for Malaysia” by Encik Ezhar Yazid Jaafar General Manager, Strategic Planning, Gas Business, PETRONAS.
•“High Impact Oil, Gas & Energy (OGE) Projects under the ETP” by Encik Muhammad Hudhaifa Ahmad, Sr Manager, NKEA OGE, PEMANDU.
•“Is Nuclear Power a Suitable Energy Supply Alternative?” by Dr. Mohd. ZamZam Jaafar CEO, Malaysia Nuclear Power Corporation.
•Strategic Panel Discussion: “Role of Private Sector in Energy Industry in Enabling Malaysia’s Economic Transformation Programme” by Y.Bhg. Dato Hamzah Bakar, Chairman, Gas Malaysia Sdn Bhd; En Sofiyan Yahya, President of MOGSC; Dato’ Ir Zulkifli Ibrahim, MD Jimah Energy Ventures Sdn Bhd and En Nan Yusri Nan Rahimy, GMD, Deleum Bhd.
•Panel Discussion on Concrete Plan of Actions – “The Energy Sector Powering Malaysia’s Economic Transformation Programme” by Y.Bhg. Datuk Loo Took Gee, Sec. Gen., KeTTHA; Ir. Ahmad Fauzi Hasan, CEO, Energy Commission; Dr. Mohd. ZamZam Jaafar; En Daud Ahmad, CEO, Cypark.

The honored Speakers were indeed benevolent in sharing their valuable and insightful experiences and views on topics that were of great interest to the audience who hailed from companies which are directly or indirectly involved in the energy and gas-related sectors.

4 key messages were gathered from the Forum:

1.Sustaining oil production in Malaysia is now a major challenge as it is showing a negative growth due to ageing of current fields and limited capacity additions. Therefore, a 3-pronged approach has been adopted to address these challenges i.e. firstly, to sustain oil and gas production which include enhanced oil recovery, develop small oil fields and increase exploration activities. Secondly, to grow downstream sector including unlocking latent gas demand through LNG imports, create a regional oil storage and trading hub and making Malaysia as the No.1 Asian hub for oil field services, increase presence of major OFSE MNCs, create regional fabrication champions and encourage JV with world class companies. Thirdly, to diversify and build alternative energy capabilities by reducing energy consumption through energy efficiency, build up solar power capacity, ensure best practice in nuclear deployment and drive industrial growth in Sarawak powered through hydro.

2.The national macro-economic strategies is projecting a GDP growth from RM552billion in 2010 to RM740billion in 2015, to be driven primarily by private sector investments with a 12.8% annual growth rate between 2011-2015. Other core strategies include supporting innovation-led growth, rationalizing the role of government in business; developing SMEs as an engine of growth and innovation; competing globally; putting in place the infrastructure for growth and focusing on key engines of growth. These initiatives will propel the country towards becoming a high income economy with a per capita income of USD15,000 by 2020.

3.The EPU projects that Malaysia is likely to become a net energy importer by 2019 and to address this challenges, five pillars of the New Energy Policy have been introduced vis-à-vis energy pricing, energy supply, energy efficiency, governance and change management. Gas price revision is to remove market distortions by rationalizing subsidies, with a target market-oriented gas pricing by 2016. Key energy supply side initiatives in the oil and gas development include having LNG regasification terminals in Malacca, to be operational by August 2012; in Lahad Datu to be operational by 2015 and in Tanjung Pengerang, Johor to be operational by 2015, the Refinery and Petrochemical Development(RAPID) to be operational by 2016. Two Kimanis Power Plants, with total capacity of 400MW, are to be commissioned by 2013 and another 300MW Lahat Datu to be commissioned by 2016.

4.Nuclear energy is now one of the options for electricity generation, post 2020 particularly in Peninsular Malaysia. The reality is that if nuclear is not introduced, then the 4000-5000MW supply gap has to be made up by other energy sources. In July 2010, the Government has adopted National Nuclear Policy as a guideline for the development of nuclear sector for electricity generation and non-electricity generation in Malaysia. Y.A.B Prime Minister had announced the establishment of Malaysia Nuclear Power Corporation (MNPC) and MNPC will lead the planning based on ETP’s nuclear development timeline of 11 to 12 years (132-144 months) from preparatory phase to commissioning, (targeting 1st NPP COD in the year 2021). Nevertheless, there are four key challenges towards realizing the nuclear energy option vis-à-vis promote public acceptance; sign/ratify relevant treaties & conventions; put in place detailed regulations; and acquire approval for plant sites.

The panel discussion sessions generated active participation and interactions with lively, open and ‘sensitive’ questions raised from the floor. The panelists provided clear and candid responses to the questions.

The positive feedback gained from the Forum augurs well for the continuation of such forum next year.

With the support of the Energy Commission, ECOM, the relevant ministries and members, the organizers hope to make next year’s event an even bigger and more successful one.

We look forward to your support and participation for the coming Energy Forum 2012.