KUALA LUMPUR: The Malaysian oil, gas and energy sectors have exceeded its target, achieving 112 per cent of its 2017 key performance indicator (KPI).
The National Transformation Programme 2017 Annual Report said this was attributed to highest ever foreign direct investment (FDI) inflow to Malaysia of US$7 billion investment from Saudi Aramco in the Refinery & Petrochemical Integrated Development Project (RAPID) in Johor.
Meanwhile, the US$27 billion Pengerang Integrated Petroleum Complex’s (PIPC) has reached 84 per cent completion, and set to be 100 per cent operational by the first quarter of 2019.
En route to materialise its target to make Malaysia an oil and gas downstream hub, the Pengerang Deepwater Terminal (PDT) received more than 1,458 vessels including seven very large crude carriers (VLCCs) and handled 1.5 million tonnes of petroleum products as of December 2017.
For the oil and gas services and equipment (OGSE) sector, Malaysia aims to reach RM10 billion in investments in two years compared to RM7.7 billion investments recorded last year.
The sector also eyes to achieve the target of 50 multinational companies (MNCs) to set up operation in Malaysia against 39 from 2012 to 2017.
18 OGSE MNCs have already based their headquarters in Malaysia.
The report said the oil, gas and energy sector had increased Malaysia’s competitive advantage by intensifying exploration and enhancing production from domestic reserves while building a strong presence in the regional mid-stream logistics and downstream markets in addition to exploring alternative energy sources.
With the Gas Supply (Amendment) Act 2016 having been amended on January 16 last year, new gas market licencses were issued through Third Party Access, allowing the entrance of new players into the market.
Malaysia has also committed to the Paris Agreement with 500 energy-intensive companies’ having reduced total energy consumption to 14,455 GWh and set aside RM200 million funds to spur the implementation of energy-efficient projects.
The number of photovoltaic service providers grew to 120 in 2017 from 30 companies in 2011 and 6,114kW of Net Energy Metering capacity approved in 2017.