Natural Gas Named as Future Energy for Malaysia

In collaboration with the International Gas Union (IGU), the Malaysian Gas Association (MGA) held the IGU Diplomatic Gas Forum, which is a series of forums in several major worldwide cities including Washington, Stockholm and Madrid. The forums are designed to create awareness on the gas market and benefits of natural gas amongst the diplomatic corps and international communities in those countries.

The IGU Diplomatic Gas in Kuala Lumpur focused on the latest developments of the gas market in Malaysia, namely the market and regulatory reforms that were implemented when the Gas Supply (Amendment) Act 2016 took effect early last year. The Act enhances competition in the gas market by enabling the participation of third parties in the gas supply industry via the Third Party Access (TPA) system.

Under the TPA, new gas suppliers can bring natural gas in liquefied form (LNG) into the country via any of the two Regasification Terminals (RGT) and deliver their gas to their buyers using the existing transmission and distribution pipelines. The TPA would also allow large gas users to purchase their own supply of natural gas in LNG form from any source and utilise the regasification terminals and pipeline facilities to bring the fuel their premises.

In that manner, market liberalisation will promote competition, efficiency and supply security, as well as ensure the long-term security of gas supply to the country.

“Natural gas has always played a fundamental role in supporting Malaysia’s economic development. In the last 30 years, energy consumption has increased by six-fold, with half of that demand being powered by natural gas,” said Hazli Sham Kassim, President of the Malaysian Gas Association.

The credentials of natural gas as a cleaner, efficient and cost-effective fuel are indisputable. Abundant supply, competitively priced and being the cleanest fossil fuel make natural gas as best option to fuel the economy, whilst at the same time enabling countries to meet their carbon emission commitments.

This is consistent with the theme of this year’s World Gas Conference (WGC2018) in Washington DC, USA, which is the world’s largest gas conference and will showcase the vital role of natural gas in Fuelling the Future.

In his keynote address, Dr. Joo-Myung Kang, the Vice President of International Gas Union (IGU) said: “The energy transformation is already underway with natural gas complementing renewables.

In next coming years, climate change and poor air quality are not the problems of the next generation. This is an imminent dilemma we have to tackle. It is time for lawmakers, policymakers, central and provincial governments to provide better direction, enact enlightened policies and lead markets to respond to a sustainable future powered by gas.”

Hazli Sham Kassim emphasised the role of natural gas as a future energy for Malaysia, “At MGA, we see natural gas as playing a major role in ensuring a sustainable future for Malaysia. There are still plenty of growth for greater utilisation of natural gas. Efficient use of energy can be enhanced using natural gas as fuel.”


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