The country’s gas industry brings in over 135b per annum and creates over 80,000 jobs for the wider economy
by AZALEA AZUAR / pic BLOOMBERG
MALAYSIAN Gas Association (MGA) welcomed the inclusion of natural gas in the Natural Energy Policy (NEP) 2022-2040 as it is important in driving Malaysia’s socioeconomic growth.
The country’s gas industry is essential as it brings in over 135 billion per annum and creates over 80,000 jobs for the wider economy as well as being the cleanest fossil fuels (reducing greenhouse gas emissions).
MGA president Abdul Aziz Othman believes natural gas is important to the country’s energy security and socioeconomic development, and the new policy came at the correct time.
He also believes that Malaysia has its indigenous natural gas and the infrastructure to bring additional gas to complement the volume.
“A comprehensive NEP is important for our country as we address the energy trilemma and embark on a pragmatic and orderly energy transition towards achieving sustainability and net zero emission.
“From MGA’s quick analysis, we observe that nearly half of the initiatives outlined in the NEP will have either a high or medium impact on demand for natural gas,” he said in a statement.
MGA is also part of the NEP’s technical committee and looks forward to launching the Natural Gas Roadmap (NGR).
“The NGR is expected to chart the direction and future proof of the gas industry by ensuring the security of supply, optimising supply and increasing demand towards a vibrant and sustainable Malaysian gas industry,” Abdul Aziz said.
The NEP was launched held on Monday, with its first version launched in 1970 followed by the Four Fuel Diversification Policy in 1981.
Since then, the supply and consumption of natural gas have grown rapidly and become the single largest source of energy in 1998, overtaking oil.
Natural gas comprises 42% of Malaysia’s total primary energy supply and remains the single largest energy source.
Some of Malaysia’s biggest players in the natural gas industry include Gas Malaysia Bhd, Conocophillips Asia Pacific Sdn Bhd, Exxonmobil Exploration and Production Malaysia Inc, Hess Exploration and Production Malaysia BV, Hibiscus Petroleum Bhd, Malaysia LNG Sdn Bhd and Sabah Energy Corporation Sdn Bhd.