MGA SEEKS CLARITY ON ENERGY MIX

Move to liberalise gas market dampened by regulated pricing, says president

MORE clarity is needed on the government’s energy mix policy and market pricing to attract investments into the country, said Malaysian Gas Association (MGA) president Hazli Sham Kassim.

He said there was uncertainty whether the gas market reform would continue under the new administration.

Hazli said the move to liberalise the gas market and promote a more open industry was dampened by regulated gas pricing.

“If the gas market is liberalised and open to other parties to sell, it makes sense for investors to start investing.

“If the price of gas is capped, it will discourage investors from coming in as they will not make much profit.

“Moreover, there are uncertainties over the reform policy. Until more clarity is given by the government, it is likely the gas market will stay at the current level,” he told a briefing, here, yesterday.

On the country’s energy mix, gas seems to be on the downward trend as its forecast composition is expected at 32 per cent in 2026 compared with coal (56 per cent).

Gas production stands at 6.7 billion standard cubic feet per day as of August. Malaysia is the third largest liquefied natural gas producer in the world after Qatar and Australia.

Hazli said with the government’s commitment to make Malaysia a low carbon economy, natural gas should be considered as the perfect partner for renewable energy.

“Gas-fired turbines have quick start-up and ramp-up times, and are flexible enough to address the intermittencies of renewable power, especially solar photovoltaic.

“Natural gas also offers integrated innovative solutions for the country’s long-term energy mix, be it as feedstock for industries, fuel for heating or combustion as well as transportation at significantly lower environmental and economic cost,” he added.