SHAH ALAM: Gas Malaysia Bhd
(Gas Malaysia) will allocate between RM1.2 billion and RM1.4 billion for capital expenditure to build up to 800 kilometres (km) of gas pipelines in Peninsular Malaysia in the next five years.
Its group chief executive officer Ahmad Hashimi Abdul Manap said despite the introduction of renewable energy, the company believes natural gas will still be relevant for a long time as this fuel emits lower carbon dioxide compared to other fossil fuels.
"We believe more and more customers will subscribe to Gas Malaysia’s long-term contract because of our 31 years of experience in this business and even during the Covid-19 pandemic we increased our workforce and continue to build our infrastructure,” he told reporters after the launch of Gas Malaysia’s "Business Sustainability Plan: A Greener Horizon” in Setia Alam here today.
The plan was launched by Minister of Natural Resources, Environment and Climate Change Nik Nazmi Nik Ahmad. Also present was the chairman of Gas Malaysia Tan Sri Wan Zulkiflee Wan Ariffin.
Ahmad Hashimi said over the last 30 years, Gas Malaysia has built over 2,800km of gas pipelines, mainly in industrial areas and in some residential and commercial facilities.
On Gas Malaysia’s role in promoting biomethane as a renewable energy source, he said the company has established two operational sites in Johor and plans to build another two sites before the first half of next year.
"With capital expenditure of about RM15 million to RM20 million per site that includes biomethane station and procurement of sales, we aim to double up the number of our stations every year.
"As the pioneer in this biomethane business, we would like to promote and continue the engagement with the government and regulatory bodies to ensure that we have enough support from the government and perhaps there could be some initiatives going forward,” he added.
Nik Nazmi said in his speech that the transition away from fossil fuels is not just a response to global pressures but represents an opportunity for growth and innovation.
"The successful execution of the National Energy Transition Roadmap (NETR) is forecast to elevate the gross domestic product (GDP) value (for the sector) from RM25 billion in 2023 to RM220 billion by 2050, generating employment opportunities for 310,000 individuals,” he said.
Nik Nazmi said the energy sector has historically contributed about 28 per cent of GDP and employed 25 per cent of the nation's workforce and stands as a major source of national income, with petroleum-related products contributing 31 per cent of fiscal revenue and energy exports representing 13 per cent of total export value.
"Anticipated economic and population growth, coupled with rapid urbanisation, will fuel an escalation in energy demand, projected to rise by 2 per cent annually until 2050,” he added. - Bernama
