KUALA LUMPUR: Malaysia is drafting a Natural Gas Roadmap (NGR) as a continuation of the market liberalisation and to further future proof the gas industry, Prime Minister Tan Sri Muhyiddin Yassin said.
The roadmap was part of the overall National Energy Policy to be announced in the first quarter of 2021, Muhyiddin said at the 7th International Energy Forum-International Gas Union (IEF-IGU) Ministerial Gas Forum yesterday.
He said the blueprints would serve as an important policy framework in energy sector under the 12th Malaysia Plan spanning 2021 till 2025.
"The NGR, among others, strives to optimise the value of indigenous gas resources, enhance security of supply and access to cost competitive gas, amongst others."
Muhyiddin said numerous initiatives and infrastructure had been established to bolster the use of gas within the country and beyond its shores.
"Malaysia's global innovation in gas with the completion of the world's first operational floating LNG (FLNG) facility in 2016 with the capacity to produce 1.2 million tonnes of LNG per year has allowed it to optimise previously stranded gas fields.
"This is followed by the second FLNG expected to go into commercial operations next year," he said.
Meanwhile, Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed said the strength and openness of Malaysia's economy had provided a solid foundation for foreign investments to grow and flourish.
He said as one of the fastest growing economies in the Asia Pacific region, Malaysia's robust and thriving natural gas industry offered a plethora of attractive market opportunities, across the gas value chain.
"With 42 trillion cubic feet, Malaysia is blessed with the second largest proven natural gas reserves in Asean. To meet the rising demand for clean energy, Malaysia's indigenous gas production, supplemented by regasification facilities, ensures security of supply for long-term energy sustainability.
"This also helps to sustain demand, while solutions are being developed to render technically and commercially challenging reserves more viable," he added.
Mustapa said Malaysia's abundant gas reserves and security of supply was further underpinned by its reputation as one of the world's most reliable LNG suppliers - with a total LNG production of almost 36 million tonnes per annum.
"Through Petronas, Malaysia has sustained its market position, as one of the most reputable LNG players globally, having supplied more than 11,000 cargoes without fail for over 35 years. The provision of a strong business ecosystem through government policy support and market liberalisation, is crucial in mitigating the decline of indigenous gas production.
"Through the Gas Supply (Amendment) Act 2016, the introduction of the third-party access (TPA), is anticipated to enhance competition, increase value creation and improve customer service."
Mustapa added that according to the IGU Wholesale Gas Price Survey, Malaysia's gas prices remained competitive, compared to many of its Asian counterparts.
In addition to a healthy gas market, well-developed infrastructure and attractive fiscal incentives had been designed to attract potential investors, he said.
"As a result, Malaysia is viewed as among the world's top investment destinations for the energy sector, with more than 5,000 companies from over 40 countries calling Malaysia their business home," he added.