KUALA LUMPUR: The Malaysian Gas Association (MGA) is urging the government to provide equal support to the gas industry in the 2025 Budget to aid Malaysia's transition to a low-carbon economy.
MGA stated that both natural gas and renewable energy will play key roles in this energy transition, while coal usage will steadily decline.
The association projects that natural gas's share in the Total Primary Energy Supply (TPES) will rise from 41 million metric tonnes of oil equivalent (Mtoe), or 43 per cent in 2023 to 57 Mtoe, or 56 per cent by 2050.
As more data centres look to establish operations in Malaysia, the country's energy demand is expected to increase significantly, adding pressure on the energy sector, including the gas industry.
MGA president Abdul Aziz Othman reaffirmed the association's commitment to collaborating with financial institutions to ensure that its members and other industry players have access to funding, including the RM2 billion seed fund for projects related to the National Energy Transition Roadmap (NETR).
"To achieve our ambitious NETR targets, it is imperative that the gas industry receives the same level of support and incentives as the renewable energy sector. This includes tax incentives, grants, and funding to encourage continued investment and development," he said.
The MGA also highlighted the gas industry's crucial role as outlined in the NETR, with key government leaders underscoring its importance.
In the NETR 2023 Executive Summary, Prime Minister Datuk Seri Anwar Ibrahim stated that gas is not just a transitional fuel but also a major contributor to Malaysia's TPES.
Economy Minister Rafizi Ramli echoed this, emphasising the need for proactive measures to secure natural gas supplies through infrastructure development and long-term agreements to stabilise fuel imports.