KUALA LUMPUR: Malaysia is poised to further strengthen its potential as a key gas player in the region by capitalising on its existing extensive gas infrastructure.
The natural gas industry has also contributed significantly to the national gross domestic product over the years, while encouraging investments opportunities for local businesses.
Economic Affairs Minister Datuk Seri Mohamed Azmin Ali said Malaysia has recorded consistent economic expansion due to strong economic fundamentals and diverse sectorial strength despite the ongoing global economic challenges.
“As we look to sustain this momentum moving forward, the oil and gas industry, which is Malaysia’s second highest export earner is most definitely a key contributor to the country’s trade,” he said in a speech, which was read by his deputy Senator Dr. Mohd Radzi Md Jidin at the inaugural Malaysian Gas Symposium (MyGAS 2019), here today.
He also added that Malaysia holds a significant position in the global market as the country ranked as the world’s fourth largest exporter of liquefied natural gas.
“The future prospects of the industry look promising with global demand now forecast to increase over the next decade.
“This growth trajectory reflects global aspirations of countries in pursuing prosperity while ensuring sustainability,” he said.
In his speech, the Minister also shared several key initiatives to be undertaken by the government including the National Oil and Gas Services and Equipment (OGSE) Industry Blueprint Study under the 12th Malaysia Plan.
He said the blueprint would further elevate the competitiveness of local players, subsequently promoting long-term resilience and industry sustainability.
The government had also collaborated with industry players to publish an Oil, Gas, Energy and Environment White Paper on Malaysia’s Future Energy Landscape.
This is effort signified Malaysia’s aspirations to be a low-carbon economy with a blueprint on energy policies that will stimulate climate action and mitigate carbon emissions.
It is estimated that by 2035, more than 70 per cent of energy demand growth will be met by gas and renewables combined, with gas supplying of more than 40 per cent of the additional demand.
The demand would be driven by the current global demand for climate action, where countries globally are putting in place policies to advocate the increased usage of natural gas.
Malaysian Gas Association (MGA) president Hazli Sham Kassim said natural gas is the perfect partner for renewables given that gas-fired turbines allow flexibility to address intermittencies of renewable power generation as well as offer integrated innovative solutions at significantly lower environmental and economic costs.
“With the unique properties of natural gas and its promising prospects, the need of the hour is for a comprehensive roadmap to actualise the full potential of Malaysia’s natural gas industry and spur the low carbon economy,” he said.
The Economic Affairs Ministry said the government has agreed to host the 7th International Energy Forum (IEF) and the International Gas Union (IGU) Ministerial Gas Forum in September 2020 to recognise Malaysia’s pivotal role in the regional platform.
The forum will also offer a privileged venue for high-level dialogue to discuss Malaysia’s roles in key aspects of global energy value chains such as the integration of the world’s gas supply and infrastructures.
MyGAS 2019 is jointly co-hosted by the Ministry of Economic Affairs Malaysia and MGA, aimed at providing a platform exclusively focused on natural gas.
The forum also convened over 200 global industry players, discussing a wide array of topics including current market status, regional and global outlooks, progressive policies and future prospects.
Themed “Natural Gas – Fueling a Sustainable Future for Malaysia”, MyGAS 2019 addressed the increasingly important role natural gas plays in driving the sustainable socio-economic development of the country and the potential of the industry.
Among the participants at MyGAS 2019 include speakers and representatives from the government agencies including Ministry of Economic Affairs, Ministry of Finance, Ministry of International Trade and Industry, Ministry of Energy, Science, Technology, Environment and Climate Change, Energy Commission, Malaysian Investment Development Authority and key stakeholders such as Petronas, Gas Malaysia Bhd, Shell Energy, ExxonMobil, Snam (Italy), PTT Public Company Limited (Thailand), Wood Mackenzie (UK), The Lantau Group (Hong Kong), IQI Global and The Energy Institute (UK).