August 16, 2021

Local gas market to further open up in 2022 - The Edge Markets

On 16 August 2021, The Edge Markets published an article titled “Local gas market to further open up in 2022” highlighting the next step forward in facilitating Malaysia gas market liberalisation, ways to attracting Third-Party players to enter the market to ensure the success of the Third-Party Access (TPA), a key component of gas market liberalisation and Power sector pricing as a key factor to it.

Malaysian Gas Association (MGA) were mentioned in the article following the MGA Roundtable on TPA that was successfully held on 12 March 2021.  The Roundtable discussion was participated by key stakeholders including Economic Planning Unit (EPU), Ministry of Energy & natural resources (KeTSA), PETRONAS, MISC Berhad and Federation of Malaysian Manufacturers (FMM) to discuss the LNG market and deliberate its impact on the local gas market. The Roundtable participants were joined by more than 100 observers from amongst the Malaysian gas players, including TPA Import & Shipping Licencees.

“In March, the Malaysian Gas Association said the local gas market is expected to be fully liberalised in 2022, with the remaining regulated gas tariffs ending five months from now on Dec 31.”

The article stated a statement by PETRONAS Gas CEO Abdul Aziz Othman,  “From the market liberalisation perspective, I think the government should discuss with the shippers on how best to release some of the spare capacity so that other players can come into the market. PetGas’ role is to find other shippers to take over those capacities.”

They have also cited a statement by one of MGA members, Petrolife.  Datuk Mohd Aqliff Shane, Petrolife Managing Director in his statement “Our government policy on gas market liberalisation has come in time to help SMEs (small and medium enterprises) towards economic recovery due to the COVID-19 pandemic.  Petrolife is ready to take part as the cheaper alternative gas supplier in 2022 post-gas market liberalisation.  We will provide supply and services to SMEs, with flexibility and competitive pricing that benefits from our system integration and cost optimisation.  Petrolife is also providing more efficient, greener and cheaper energy solutions by supplying LNG to customers who are not connected to the gas pipeline system.

On the Power sector pricing, the article stated a statement by the Energy Commission (EC) that “Power sector pricing is crucial to encourage LNG imports, which will ensure the reliability of supply in the long term.”

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