Gas-firing the power needs of the nation

I REFER to the advertisement placed by Energy Watch on April 15 highlighting the important role of gas in power generation. Indeed, the gas industry in Malaysia is well established and has been responsible in ensuring energy security for the country for over 30 years.

Supplying domestic gas to power-generating plants and other consumers requires an extensive value chain that includes operators of upstream oil and gas companies, gas processing plants ( pic), pipelines and power plants, all working in unison and in a seamless manner.

This domestic gas value chain has created direct and indirect employment for thousands of Malaysians. The high employment in this sector has generated multiplier effects that has enabled our economy to remain well supported, robust and resilient in the face of continued global economic headwinds and uncertainty.

Besides enhancing the economy of Malaysia through employment, natural gas can play a vital role in ensuring that the country achieves her green-house gas (GHG) emissions reduction targets as committed in the Paris Agreement which was ratified last year, and reduce air pollution.

Gas-fired power generation is the cleanest burning fossil fuel, is capable of thermal efficiencies exceeding 60%, and is flexible, making it the ideal complement to intermittent renewables.

The supply of gas to the power generation sector is still dominated by domestic gas. According to Tenaga Nasional Berhad’s first quarter 2017 report, liquefied natural gas (LNG) constituted less than 3% of the overall fuel costs for power generation. LNG import costs are expected to remain low for a considerable period as many LNG supply sources are coming onstream globally.

Natural gas has fuelled Malaysia for the past 30 years, providing energy security and enriching the economy. Going forward, it is the best fossil fuel to enable the country to achieve her GHG emissions reduction target and complement the growth of renewable energy (RE).

From economic and environmental standpoints, Malaysia must ensure that natural gas remains the significant source of fuel for power generation.

ROSMAN HAMZAH Secretary-general Malaysian Gas Association