A senior official of Malaysian Gas Association (MGA) highlighted the role of natural gas in driving socio-economic growth in Malaysia in webinar held by Gas Exporting Countries Forum (GECF).
Speaking at the the 52nd edition of the GECF Gas Lecture Series, entitled ‘Collaborative Government-Association Synergy for a Sustainable and Vibrant Gas Industry’, Hazli Sham Kassim, the President of Malaysian Gas Association (MGA) discussed the role MGA is playing in shaping national policies, natural gas roadmap that Malaysia has been championing since 2018 to future proof industry and also shed light on future opportunities for gas in Malaysia.
He noted that Malaysia’s NEP is expected to be launched in the second half of 2021 with an aim to ensure sub-sector energy development is aligned with the global energy transition trend. “We anticipate that the National Energy Policy, currently undertaken by the Malaysian Government, will determine longterm strategies surrounding the national energy sector.
It will address in-depth cleaner energy sources including renewables and natural gas and ensure that all aspects related to the energy sector and environmental sustainability can also be better addressed,” said Kassim, whose association estimates that energy – precisely natural gas – contributes as much as 12 percent to the GDP of Malaysia, one of the 19 member states of the GECF.
The GECF Secretary General, Yury Sentyurin noted that Malaysia, like many of the Forum’s member countries from Russia to Qatar, is showcasing that only a holistic approach can address the three intertwined concerns of energy security, affordability, and sustainability.
“The road to recovery does not just depend on the outcome of the battle between the virus and the vaccines – it also hinges on how governments around the world deploy their policies and policy support to all economic sectors.
This highlights the role of government-enterprise synergy to drive forward the agenda and shape opportunities.,” he said. “The role of the Malaysian Gas Association is identical to GECF which is also entrusted by its 19 member countries to promote gas related dialogue, research in much broader, international stage.
The very establishment of our forum bears strong imprints of Malaysia one of the founding members,” he added. He said, “We are currently in midst of a big pandemic causing economic downturn, disrupting the way of life.
In April 2021, the World Economic Outlook report of the International Monetary Fund stated its global growth of 6 percent in 2021, the overall recovery remains divergent and highly uncertain.
Natural gas has suffered a lower percentage decline than either coal or oil and demand is set to return to growth. According to latest edition of GECF gas outlook 2050, natural gas will become the leading source in the global energy mix by midcentury, increasing its share from the current 23 percent to 28 percent. The worldwide natural gas demand is expected to grow by 50 percent to 5920bcm in 2050.”
“This abundant, flexible, clean source of energy will expand across all regions with exception of Europe due to renewables, environmental and energy efficiency policies pursued by European countries. Its highest rise will be Asia Pacific, North America, and the Middle East accounting for more than 75 percent of the total gas demand growth by 2050.”
According to our projections firstly, over all in the Asia Pacific region, Malaysia’s natural gas demand is expected to double, rising by strong pace of 2.2 percent per annum and to reach 1600bcm by 2050 compared to its 2019 level of 835bcm. Secondly, Asea and Asian are home to 2.25 billion people with a combined GDP of $32.73 trillion.
Together this region has become the economic engine of the global economy and will continue to be in this position for the foreseeable future as it contains the world’s fastest and largest economies and by extension its energy needs will account for around 60 percent for global energy demand increase between today and 2050.
This growth will account for 42 percent of the global gas increments within the outlook period given by China, India, emerging markets such as Pakistan and Bangladesh and few others in South East Asia.
Thirdly, at the moment coal provides as much as 50 percent of the Asean and the East Asia’s energy needs but the countries of the region are united in their policy shift to improve their qualities, reduce pollution and curtail emissions
In this context natural gas is one of the environmentally friendly fuels and set to play a frontline role to sustain the expected economic growth and meet the surging energy demand in this part of the world.
Sentyurin pointed that the GECF countries are amongst the lowest cost producers globally and were able to weather the current storm. As joint representatives of 70 percent of the proven natural gas reserves, 44 percent of its marked production, 52 percent of pipeline, and 51 percent of LNG exports across the globe we understand our responsibility and duty to the world are committed to strengthen global security as reliable suppliers of this important energy source.
Kassim said, “Natural gas will play an even more critical role in facilitating energy transition.
We look forward to the completion of Malaysia’s Natural Gas Roadmap that we understand has been designed to optimise the value of indigenous natural gas resources, enhance security of supply through identifying new growth areas and at the same time ensuring a sustainable gas industry in Malaysia.”
