KUALA LUMPUR: Malaysia is moving closer towards its effort to open up its natural gas market.
Petroliam Nasional Bhd (Petronas) executive vice president & CEO, gas and new energy Adif Zulkifli said Malaysia is just one price review away to achieve market-based gas pricing this year.
“If this happen, it will be truly a game changer as our gas reforms move towards market liberalisation,” he said during his speech at the Malaysian Gas Symposium (MyGas) 2019 here today, organised by Malaysian Gas Association (MGA).
He pointed out that the market liberalisation would promote healthier competition in the gas supply industry and eliminate inefficiency.
“We strongly believe that market-based pricing that reflects the prevailing supply and demand fundamentals will encourage the efficiency use of our gas resources and also attracts competitively-priced imported gas to supplement our domestic gas supply.
“This will ensure the sustainability of Malaysia gas industry,” Adif said.
Towards this end, he said Petronas has open up its LNG receiving terminal in Melaka and facilitated the provision of Third Party Access (TPA) for gas pipeline and LNG regasification terminals.
“These are key imperatives to encourage the participation of third party suppliers and import gas that provide consumers with more choices and better services,” he said.
Adif pointed out that Malaysia is targeting to increase it gas production by additional 1 billion standard cubic meter per day or 12.5% by 2025 from the current 8 billion per day.
“This depending on domestic gas market demand growth when we reach market parity.
“Gas contributes about 40% of the country’s primary energy supply mix,” he said.
Subscribe or renew your subscriptions to win prizes worth up to RM68,000!
