MGA welcomes industry’s first third-party LNG cargo
The Malaysian Gas Association (MGA), the nation’s lead advocate for the local gas industry, welcomed the delivery of the first third party liquefied natural gas (LNG) cargo, a testament that the natural gas market reforms in Malaysia remain on track to ensure sustainability of the industry.
The regasification terminal at Sungai Udang in Melaka received the cargo on October 7, – the first since the Third Party Access (TPA) came into force, said MGA in a statement today.
It said the first third party LNG cargo proved that Malaysia is on course to a transition towards a vibrant and sustainable gas market.
“Efforts must also be focused on increasing demand for gas within the country. Higher demand will create more opportunities for third party to enter the market and spur investment to develop upstream indigenous gas that will further strengthen the long-term security of supply.
“Higher demand will also increase utilisation of the existing gas infrastructure and encourage expansion and connectivity into underserved areas,” the association said.
It said more third party LNG cargoes would gradually transform Malaysia into a dynamic competitive gas marketplace with multiple sellers offering more options to the consumers.
For this to happen, the association said it was important to ensure that the gas market reforms, especially transitioning from regulated to market pricing, stays the course to provide a competitive and fair playing field for all gas sellers.
In this regards, MGA would like to commend the Ministry of Economic Affairs (MEA), Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC) and Energy Commission (ST) for keeping the gas market reforms on course.
Meanwhile, MGA president Hazli Sham Kassim said the right pricing for natural gas would encourage more third parties to participate in our gas market and at the same time encourage greater upstream investments.
“Maintaining the right production volume of upstream indigenous gas from offshore Kerteh (Trengganu) is important in ensuring the sustainability of the natural gas industry along its entire value chain where many of the MGA members are involved.
“This includes the vibrant petrochemical industry in the east coast of Peninsular Malaysia that significantly contributes towards the Malaysian economy,” he said.
Hazli Sham said a comprehensive national Natural Gas Roadmap would chart the path of the industry in ensuring a sustainable and vibrant market that is large enough for all incumbent and new players, whilst offering greater options to consumers.
The MGA urged all stakeholders from across the industry to work together in formulating the Natural Gas Roadmap.