Nov 17, 2023

Malaysia’s gas industry remains resilient, steered by right policies- BERNAMA

On 16 Nov 2023, MGA issued a press release following the Malaysian Gas Symposium 2023 (MyGAS 2023) that was set to explore the revitalised role of natural gas in the context of energy transition in the country.

Datuk Yatimah in her Keynote Address highlighted that “In the National Energy Transition Roadmap (NETR), launched by YAB Prime Minister in August 2023, natural gas is set to be the transitional fuel, constituting 56% of the total Primary Energy Supply (TPES) mix in 2050. This is followed by renewables (that include solar, hydro and bioenergy), contributing 23% of the TPES in 2050 from a mere 4% in 2023. With this outlook, natural gas will continue to play a pivotal role in Malaysia’s energy transition pathway as the nation moves towards a low-carbon economy.”

Statement by Abdul Aziz Othman, President of MGA:

  1. The Malaysian gas industry has a long-standing history of contributing significantly to GDP growth and socio-economic development for Malaysia. It has been a reliable energy source since the 1980s, providing energy security for the nation and powering industries. As we embark on the energy transition journey, focus should also be given to the gas industry which is expected to play a vital role in this journey
  2. Gas demand from the power sector will remain strong as natural gas continues to play a prominent role in cleaner energy transition.
  3. Thus, heading towards full gas market liberalisation of the energy market including gas and electricity is required for a vibrant and sustainable gas industry, attracting investors and third-party players that ensure the nation’s long-term energy security and reliability.
  4. The industry calls for necessary support in terms of Government incentives, full market liberalisation, foreign direct investment (FDI) and access to financing which are required for the gas industry to fulfil its expected role in 2050 and beyond. These measures are essential for creating an enabling environment that encourages innovation in the gas industry, leading to increased socio-economic development and job creation.
  5. As part of ongoing decarbonisation efforts, the industry has embarked on many collaborations to manage carbon emissions through Carbon Capture and Storage (CCS) technology throughout the whole gas value chain. Attracting financial investment is crucial as the CCUS technology has the existing potential to remove ~90% of CO2 from gas combustion in power plants.
  6. As we move forward, the Natural Gas Roadmap (NGR) which will be released by the Government in 2024 must be realistic and pragmatic. The gas industry expects the NGR to outline a clear path for the industry, promoting sustainable growth and ensuring a reliable supply of gas to meet the increasing energy demand.
  7. The gas industry is eager for the forthcoming Natural Gas Roadmap (NGR) and hopes the NGR addresses these key elements as a comprehensive roadmap that takes into account the current energy transition efforts and recognises the pivotal role that gas will continue to play in meeting global energy demands.

The press release had received coverage on national news platforms including BERNAMA, Astro Awani, Buletin TV3, The Sun, Berita Harian, Selangor Journal, and Newswav.

Please click the link below to read more of the news coverage.