Fuelling a Sustainable Future, Natural Gas Remains Significant
in National Energy Policy

Kuala Lumpur, 20 September 2022 – As the nation’s lead advocate for the Malaysian gas industry, Malaysian Gas Association (MGA) applauds the launch of a long-term and comprehensive National Energy Policy (2022-2040) by the Prime Minister, YAB Datuk Seri Ismail Sabri Yaakob on 19 September 2022.

Since the formulation of the first National Energy Policy in 1979, followed by the Four Fuel Diversification Policy in 1981, the supply and consumption of natural gas have grown rapidly and become the single largest source of energy in 1998, overtaking oil. For decades, natural gas has played a key role in driving the nation’s socio-economic development where the rapid rise in GDP was in tandem with the growth of natural gas consumption. Today, natural gas remainsthe single largest energy source in Malaysia, supplying around 42% of its total primary energy supply in 2019. More importantly, the Malaysian gas industry brings in over 135 billion per annum and creates over 80,000 jobs for the wider economy.

As the cleanest fossil fuel, natural gas plays an important role in providing clean, secure, reliable, and flexible energy and security, and at the same time helping the nation meets its improved Greenhouse gas emissions reduction target of 45% of GDP by 2030. With multiple sources and an extensive network of gas delivery infrastructures with reliability exceeding 99%, natural gas plays a significant role to fuel the economy, in particular the power generation sector, thus ensuring energy security and wide energy access for the country.

“Natural gas is critical to the energy security and socio-economic development of Malaysia. The new National Energy Policy (NEP) comes at the right time amidst the energy crisis the world is facing. Malaysia is blessed with its own indigenous gas and has the necessary infrastructure to bring in additional gas to complement the volume. From MGA’s quick analysis, we observe at least half of the initiatives outlined in the NEP will have a high impact to demand for natural gas. A comprehensive National Energy Policy is important for our country as we address the energy trilemma and embark on a pragmatic and orderly energy transition towards achieving sustainability and net zero emission.”, said Abdul Aziz Othman, President of Malaysian Gas Association in his statement.

“MGA is delighted that the role of natural gas was underlined as a key component in the National Energy Policy to continue driving Malaysia’s sustainable socio-economic growth. We are proud to be part of the Technical Committee that developed the NEP and eagerly look forward to the upcoming launch of the Natural Gas Roadmap (NGR) to complement the NEP., The NGR is expected to chart the direction and future proof the gas industry by ensuring the security of supply, optimising supply and increasing demand towards a vibrant and sustainable Malaysian gas industry.”, he added.