Policymakers, Global Industry Leaders Convene to Discuss How Natural Gas Drives Energy Transition at MyGAS 2023

Kuala Lumpur, 16 November 2023 – Malaysian Gas Association (MGA) once again organised the Malaysian Gas Symposium (MyGAS 2023), the only forum dedicated to the gas industry in Malaysia held on 16 November 2023. Strongly supported by the policymakers including the Ministry of Economy, the MyGAS 2023 was held under the theme “Revitalising the Role of Gas in Energy Transition”. Strategically set against an excellent backdrop, the symposium provides an ideal platform for policymakers and industry leaders from Malaysia, the ASEAN region and globally to discuss the role of gas in the energy transition and pragmatic pathways for the Malaysian gas industry.

The event was officiated by Yang Berbahagia Datuk Yatimah Sarjiman, the Deputy Secretary General, the Ministry of Economy Malaysia who delivered a keynote address.

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.

Statement by Andrea Stegher, Vice President of the International Gas Union (IGU):

1. Natural gas is more than a transitional fuel; it is critical for a secure and orderly energy transition.
   Gas improves the quality of human life, runs reliable power plants to balance the power grid, cooks meals, creates fertilizer to grow food, and runs heavy industry without poisoning the air. Gas also offers a deeper decarbonisation pathway, using existing infrastructure to deploy low and zero-carbon gases and CCS.
2. The energy transition must be tailored to the specific needs of the developing regions, which face different challenges and have different means to achieve a successful transition. The Southeast Asia region is blessed with significant indigenous natural gas reserves, which can be leveraged to deliver cleaner, secure and affordable energy, for an achievable and orderly energy transition balancing energy security, affordability, and sustainability in a sustainable way – both environmentally and financially.
3. As we clearly saw last year, constrained natural gas supply resulted in all-time-high emissions from coal, moving the world in exactly the opposite direction on the path to Paris. Last year has shown that an energy transition will not be possible without security and affordability of energy.
4. It is encouraging to witness Malaysia’s progress in the energy transition journey, and the excellent presentations at MyGAS today made it evident to me that Malaysia is on the right track. I am reassured by what I heard and saw here, and as the IGU continues to work in close cooperation with our Charter Member the Malaysian Gas Association, I am also confident that the Malaysian gas industry will be pivotal in for enabling the success of a sustainable energy transition for the country. One that we can plan and realistically deliver, not just a scenario on a page.
5. Malaysia’s gas will be a key to delivering on its energy transition commitment, as it can meet growing demand needs, while providing flexibility necessary for the rapid acceleration of renewables.