MGA's Article on Gas Advocacy in Newspapers

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The Malaysian Reserve (TMR) newspaper has on 22 June 2017 published an article by MGA advocating greater utilization of natural gas in both the energy and transport sector. This is in response to an earlier report on “Malaysia to slash another 25% of CO2 emission by 2030” that appeared on 21st June 2017 .

The online version can be accessed at
The entire article is repeated below for your reading convenience.

The Malaysian Reserve, 22 June 2017, Pg 8.

The Malaysian Gas Association (MGA) applauds TMR’s initiative on organising the roundtable session on 20th June 2017 to discuss clean energy future for Malaysia. As a nation, we are at a juncture where we need to make the right decisions to ensure a clean, secure and sustainable energy future for Malaysia.

We are encouraged by the commitment shown by the Malaysian Government in expediting the growth of renewable energy in Malaysia, and MGA is committed to supporting this effort. We also understand the difficulty in striking a balance between the costs and aspirations to achieve our GHG emissions reduction targets as committed to in the Paris Agreement.

Natural gas, which is the cleanest of all fossil fuels, is well known as the perfect energy source to complement and stablise the electricity grid that is connected to renewable energy. A gas turbine power plant has rapid and flexible response capability to support the intermittency of renewable energy. Today’s gas turbine combined cycle power plants have fuel efficiencies in excess of 60%. The combined heat and power (CHP) plant using natural gas – where power and useful heat are generated simultaneously, can even achieve efficiencies exceeding 80%, thus achieving a much more significant carbon reduction when compared to other fossil fuels. In addition to substantially reducing carbon emissions, a gas-fired plant also emits negligible amounts pollutants; such as particulate matter (dust) and sulphur dioxide, into the atmosphere.

In addition to its role as a clean fuel for the power sector, natural gas can further expedite carbon reduction in the transportation sector. We applaud the government initiative on the electric vehicles initiative. However, this technology in the near future would only be able to cater to the small passenger vehicles. Thus, natural gas should be considered as the replacement fuel of choice for diesel for heavy vehicles, such as transit buses and long haul trucks. Similar to its contribution to cleaner air in the power sector, natural as emits less CO2 and pollutants in comparison to diesel. The technology that enables long haul trucks to achieve ranges exceeding 800 km on a single tank of liquefied natural gas (LNG) already exists.

At MGA, we believe that natural gas plays an important role in the national energy mix, both today and in future, and offers the quicker route to achieve the GHG emissions reduction as committed to in the Paris Agreement. Firstly, natural gas is in abundance and there are still undeveloped resources in Malaysia that can be brought to market under the right terms and conditions to meet the growing energy needs. Secondly, the infrastructure for gas supply is available. In addition to piped gas from offshore, the regasification terminal (RGT) in Melaka facilitates additional imports of LNG to supplement supply from offshore Peninsula. Thirdly, the implementation of the third party access (TPA) for the supply of natural gas will level the playing field for all industry players, both incumbent and newcomers, making natural gas an open market and competitive industry. Fourthly, biogas can be introduced into the gas supply infrastructure, further greening the gas supply network in Malaysia. And finally, the credentials of natural gas as a clean, efficient, reliable, flexible and cost effective fuel are indisputable.

YAB Dato' Sri Mohd Najib Bin Tun Haji Abdul Razak’s is his keynote address during the opening ceremony of the 19th Asia Oil & Gas Conference (AOGC 2017) on 8th May 2017 said, “I believe oil & gas companies can help promote the use of natural gas, together with renewable energy, as the cleaner fuel option to sustain economic growth.” He further added, “I am hopeful that companies and government can form ‘smart’ partnerships to unlock the full potential of natural gas as a viable option – which will make both commercial sense and environmental sense, and it is important that we see these two motives as supporting one another, not being in opposition”.