Reform efforts signal bright outlook for M’sian gas industry
KUALA LUMPUR: The outlook for Malaysia’s gas industry is bright, underpinned by industry reform efforts embracing legal and regulatory requirements, infrastructure and pricing, to make it more competitive and innovative.
Malaysian Gas Association president Hazli Sham Kassim said these efforts would ultimately benefit users in terms of supply choices, competitive pricing and gas supply security.
“The concern for the environment and commitment to reduce greenhouse gas emissions will also encourage more gas usage as it is the cleanest fossil fuel, and perfect for complementing renewable energy,” he told reporters at the launch of the “Natural Gas: Flipping The Switch” report by Investvine yesterday.
Economic Planning Unit Deputy Director General (Sectoral), Datuk Allauddin Annuar launched the report.
Hazli Sham said with green technology being a significant part of the 11th Malaysia Plan, the commitment to reduce carbon emissions intensity by 45 per cent by 2030, has in itself accelerated new areas of opportunities for cleaner energy industries and initiatives to thrive.
“The government’s initiative to open up the domestic gas supply industry to market competition is another significant milestone in enhancing confidence towards embarking on a renewed gas-led mindset,” he added.
He said a major milestone was achieved with the enactment of the Gas Supply (Amendment) Act 2016 which provided not only the legal framework for third party access (TPA) to the country’s gas infrastructure, but also enhanced regulatory oversight of the domestic gas industry, namely re-gasification, gas transmission and distribution.
“With the implementation of the TPA beginning January 16 this year, nearly all of the building blocks are now in place for liberalisation of the gas industry, which allows new players to bring in gas directly into the country.
“Nevertheless, to unleash the true potential of gas in benefiting the various industries in Malaysia, it is imperative that there is confidence of supply security, as well as having a solid momentum of demand that supports the industry’s continuous growth.
“This can create a virtuous ecosystem where security of gas demand sustains security of supply, and vice- versa,” he added.
Hazli Sham said supply security is assured with domestic gas and supplemented with imported liquefied natural gas (LNG) that can now be supplied by any company through the third party access mechanism.
“Malaysia now needs to create more demand for this clean fuel. The association, through our working committee, is looking closely at several proposals to increase usage of gas in different sectors and engaging with the respective policy makers,” he added.
He said in more advanced economies, natural gas has become one of the key drivers behind cutting-edge smart energy systems and renewable energy solutions.
“The association believes that this is a new start for new conversations and adding value to this precious natural resource.
“This is a step in the right direction and moving forward, the association has no doubt that natural gas will have a key role to play in achieving low carbon economy,” Hazli Sham added.
Meanwhile, Investvine is a new portal, covering business, politics, technology and innovation, lifestyle and travel and leisure in Southeast Asia and beyond.
Entitled, “Dawn of New Era”, the report highlights the benefits brought on by natural gas to Malaysia, both environmentally and economically. — Bernama