KUALA LUMPUR: Petronas Gas Bhd (PGB) has projected a higher utilisation rate for its offshore liquefied natural gas (LNG) from the Regasification Terminal in Sungai Udang (RGTSU), Melaka from 2026 onward on higher demand by utility providers as they switch to gas from coal for power generation.
PGB head of gas transmission and regasification (GTR) Burhan Abdullah said demand is expected to pick up in the central and northern regions based on the power sector demand projection.
"We expect that the demand for gas will increase in the future, with national policies in place and our initiative to promote less fossil fuel and carbon. Our challenge is to make sure that the capacity is enough," he said during a media familiarisation trip to RGTSU recently.
PGB head of regas terminal (Sungai Udang) Mohd Isham Isa said the utilisation rate in RGTSU averaged between 10 and 15 per cent in the past three years, and the regasification terminal would be ready to cater to the demand after 2026 in terms of capability and asset capacity. "We have the capacity to cater to the demand. We expect the utilisation rate to increase to between 65 and 70 per cent (from 2026)," he added.
Petronas has successfully adopted a 5G private network at RGTSU, the first in Malaysia to adopt the 5G technology for enterprise use. The 5G private network has improved RGTSU's operational efficiency and safety, supporting its business and sustainability targets.
Meanwhile, much of the demand in the southern region at PGB's LNG Regasification Terminal in Pengerang, Johor (RGTP) is expected to reduce as it would be covered by the Kerteh gas facility through the de-bottlenecking initiative, said Burhan.
PGB's annual gas delivery plan (AGDP) was at 2.3 billion cubic feet (bcf), but actual demand averaged at 2.0-2.1 bcf, depending on the power swing.
RGTSU began its commercial operation in the second quarter of 2013, while RGTP began its commercial operations in the fourth quarter of 2017.
"We will grow throughout Malaysia when the time is right," he added, noting that PGB is also looking at expanding its gas supply network through the trans-Asean Gas Grid project to support the government's ambition to make Malaysia a regional natural gas hub.
Currently, PGB has an overall pipeline length of 2,623 km to transport sales gas to shippers' end customers across the peninsular gas utilisation (PGU) pipeline network, which mainly transports sales gas to power sectors, petrochemical plants and various industries across Peninsular Malaysia, including export to Singapore.
Currently, there are four entry points into the PGU network - from Kerteh, Pengerang, Sungai Udang, and also from Thailand.