Malaysian Gas Association (MGA) said the Gas Supply (Amendment) Act 2016, which is in operation since January 2017, allows third parties to sell gas, thus offer options to gas users, which works in the best interests of the consumers.

KUALA LUMPUR: Malaysian Gas Association (MGA) says the delivery of the first TPA (third-party access) liquefied natural gas (LNG) cargo next week will mark an important milestone in the gas market reforms that started in 2013.

That year, the first regasification terminal began operating in Sungai Udang, Melaka, enabling LNG importation.

“We welcome the agreement between Tenaga Nasional Bhd (TNB) and Shell Malaysia Trading Sdn Bhd for a trial third party cargo – the first since the TPA came into force,’ it said in a statement today.

MGA said the Gas Supply (Amendment) Act 2016, which is in operation since January 2017, allows third parties to sell gas, thus offer options to gas users, which works in the best interests of the consumers.

It provides them with an array of choices in sourcing for the right supply option by making it possible for gas suppliers to mix and match service offerings so that they meet the exact requirements of the consumers.

“This maiden third party LNG importation, and supply of gas, is an important and significant milestone for gas price liberalisation.

“It proves that with the right pricing signal from the domestic market, third parties can enter to offer competitive sourcing options and validates the policy of staying the course on gas market liberalisation.”

MGA said however, more needs to be done to increase the consumption of gas in the country for more third-party cargoes to come in.

“These include attracting new investors that consume gas, increasing the uptake of existing consumers, enhancing accessibility to the clean fuel and promoting a higher percentage of gas in the power generation mix,” it said.

MGA said gas promotes the nation’s socio-economic progress by having a high economic multiplier effect, enhances energy security by virtue of its abundance and availability and spurs the growth of the low carbon economy for a sustainable future.

“In this regard, ensuring a sustainable gas industry through increased gas utilisation will ultimately benefit the nation,” it said.