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KUALA LUMPUR: Natural gas will continue to help save the inevitable energy transition and tackle the climate change problem facing the world, said Prime Minister Tan Sri Muhyiddin Yassin (pix).
He said Malaysia’s energy mix has relied on natural gas for decades and will be for the foreseeable future, but that the country still has a long way to go on its way to a sustainable future.
However, he expressed confidence in the collective minds and abilities to make the energy transition, ensuring that today’s needs are met while also addressing tomorrow’s challenges.
“We expect natural gas to play a critical bridging role for this energy transition, providing a safe, affordable and sustainable baseload power source in synergy with growing, but often intermittent, renewable energy sources.
“This synergy gives rise to important investment opportunities, not only in upstream but in the entire value chain,” he said at the Virtual Round Table of the 7th International Energy Forum (IEF) – Gas Ministerial Forum of the International Gas Union (IGU) which was held practically today.
The prime minister said the long-term prospects for gas were brighter than those of other fossil fuels due to its comparatively lower cost and lower production emissions.
To find a true competitive advantage amid a volatile market, gas players must refocus their efforts on capital efficiency, supply chain optimization, downstream market development, decarbonization, and advanced and digital analytics, said.
“If done successfully, I believe that gas could overcome an unpredictable market and find opportunities for faster growth not only in Malaysia, but in the global market as a whole,” he said.
Muhyiddin said technology would play a critical role in achieving the positive future of gas.
Gas producers, he said, could apply digital and advanced analytical techniques to realize significant hidden value potential.
Only through these technological investments, the role of natural gas in the decarbonization of the energy sector compared to other energies.
Muhyiddin said that governments, in the design and implementation of policies, played a crucial role in shaping such opportunities.
“Much will also depend on the ability of investors to offer new solutions and avoid risks on the future direction of gas markets and technologies.
“To this end, governments can provide incentives to key stakeholders to accelerate the development, commercialization and production of new technologies for the energy transition,” he said.
The prime minister said regulatory incentives could play a more effective role in fostering energy innovation, such as policies of “regulatory sandboxes” that could create safe spaces for energy innovation stakeholders to test their solutions in a living environment, but controlled, without being subject to normality. regulatory requirements.
He also noted that any additional financial assistance should be used wisely.
As some of the previous experience with renewable subsidies in advanced markets showed, it could create a high burden for taxpayers, excess capacity and eventual unsustainable costs for consumers when phased out, if not carefully executed, he added.
Giving an update on Malaysia’s efforts in the energy sector, Muhyiddin said that a Natural Gas Roadmap (NGR) was being developed that would form a key part of the overall National Energy Policy (NEP), to be announced in the first quarter of the next. year.
These upcoming documents would therefore serve as an important policy framework in the energy sector under the 12th Malaysia Plan, 2021-2025, he said.
“The NGR strives to optimize the value of indigenous gas resources, improve security of supply and access to cost-competitive gas, among others,” he said.
Muhyiddin noted that numerous initiatives and infrastructure had been put in place to further increase gas use within the country and beyond its coasts.
Malaysia’s global innovation in gas with the completion of the world’s first operational floating liquefied natural gas (FLNG) facility in 2016 with the capacity to produce 1.2 million tons of LNG per year has enabled it to optimize gas fields previously stranded.
This would be followed by the second FLNG, which is expected to enter commercial operations next year, he added. – Called
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