July 06, 2020

MGA comments in media article on "Fixing the Right Gas Tariff"

On 6 July 2020, the Edge Malaysia featured comments from Malaysian Gas Association (MGA) on in the article “Fixing the Right Gas Tariff” on page 24. In the attached article, MGA urged that “any call to revisit the regulated tariff should take into account the whole gas supply and pricing eco-system and not just limited to opportunistic reaction towards LNG (liquefied natural gas) spot pricing. MGA further added that “any tariff set should consider the cost to the suppliers in procuring the supply and the risk undertaken by them to secure long-term supply to ensure uninterrupted supply to consumers”. Under the third party access (TPA) regime, as part of the gas market liberalisation, “the consumers can (already) take advantage of purchasing natural gas at spot prices, but this means taking on the supply risk”, said MGA. This article was a follow-up to an earlier article titled “International gas price crash, but local price stays” that was published on 15 Jun 2020 by the Edge Malaysia.

The Article