MGA had successfully organised the 4th edition of #MGAIndustryTalk on 30th September 2021 titled “Spotlight on OGSE Players in the Malaysian Gas Value Chain” showcasing the role and contribution of the OGSE players in the Malaysian Gas value chain today and in the future. The one hour insightful conversation delves into discussion on the opportunities and challenges arising from the evolution of the gas industry into a liberalised market and transition towards a low carbon economy.

Attended by more than 150 participants, MGA’s Industry Talk moderated by Afiq Abu Zarim featured four distinguished speakers; namely Mohd Yazid Ja’afar, CEO of Malaysian Petroleum Resources Corporation, Ramanrao Abdullah, Group Chief Executive Officer from Deleum Berhad, Yusri Mohamad, Group Chief Operating Officer from Valser Oil & Gas, & lastly Azizul Arkaan Azali, Senior Vice President, Client Coverage, Investment Banking from Hong Leong Investment Bank Berhad.

Natural Gas has been driving the socio-economic growth for the past several decades and today brings in a total of RM135 billion economic impact annually and employs 80,000 in the wider economy. The upcoming National Energy Policy is expected to position gas as a significant fuel to drive the energy transition towards a low carbon economy. Each component of the Malaysian Gas value chain plays an important role in ensuring sustainability of the industry.

The conversation highlighted on how the National OGSE Industry Blueprint can support MGA members from the OGSE sector via its following four strategic pillars;

1. Competitiveness
2. Resilience
3. Sustainability
4. National development

The talk also provided the perspective and expectations from the financial community on the OGSE sector.

The audience was welcomed by the Emcee, Nur Afrina from MGA Secretariat and followed by an Opening Remarks by Abdul Aziz Othman, President of MGA. The Webinar then followed with a presentation session by Yazid Ja’afar on the role and contribution of the OGSE players in the Malaysian Gas value chain today and in the future.

KEY TAKEAWAYS FROM PANEL DISCUSSION

• In his statement, Ramanrao concluded that all countries and organisations need to move towards the decarbonisation of emissions. With natural gas as the key source of energy that is much cleaner compared to other fossil fuels, industry players have to work together to collaborate in adapting the available new technologies.
• Over the years, OGSE has played critical and crucial roles in shaping the oil and gas industry. For example, gas has become more crucial because of the demand for technologies with competitive costs. During this pandemic, the cost of the operations has become the main element for the clients to find the best solutions among the service providers to cope with the gas demand in the market, Yusri Mohamad stated in his concluding statement.
• Azizul Arkaan said that the ESG markets has been growing with the asset allocation of 50% for public equity and 36% in fixed income, it shows healthy demand for ESG asset in the oil and gas sector. A company that has better sustainability practices tend to have better operational performance and better stock prices compared to the one that is rated lower for ESG. This company try to lock regular assessment on their business model to include the financial risk that is related to ESG. The investors and the bank are hopeful to see the changes in the country into the oil and gas phase and to see how the players react.
• The role of OGSE Blueprint focuses on the sustainability of the oil and gas companies to survive in the industry especially during the pandemic. According to Yazid Ja’afar, sustainable business means a profitable business that must be able to stand during the tough time not only locally but globally. He added that the OGSE Blueprint could help to optimize contribution of natural gas in Malaysia’s economy while enhancing the nation’s energy security.

Watch the full panel discussion on our official Youtube Channel (click here to watch the panel discussion)