Natural Gas Industry in Malaysia

Natural gas industry in Malaysia

  • Natural gas is a clean, efficient and reliable fuel used in power generation, industries, transportation, commercial and residential
  • Malaysia’s gas resources is approximately 100 tscf (trillion standard cubic feet)
  • The Peninsular Gas Utilisation (PGU) project, which started in 1984, has brought Malaysia into the gas era. A fully integrated gas business, spanning from upstream to downstream has been developed to further add value to Malaysia’s gas resources
  • Gas transmission and distribution pipelines in Malaysia
    • PETRONAS Gas Berhad: 2,550 km
    • Gas Malaysia Berhad: 2,000 km
  • Malaysia is working towards liberalization of the gas market to ensure security of supply and long term sustainability of the industry
  • Domestic natural gas consumption in Malaysia is approximately 2.6 bscfd (billion standard cubic feet per day)
  • Half of electricity generated in Peninsular Malaysia is fueled by natural gas
  • Natural gas is also used as feedstock in the production of steel, methanol, fertilizer and plastics
  • There are 178 NGV (Natural Gas for Vehicle) refueling stations in Malaysia. The number of vehicles using NGV is approximately 77,000
  • In 2015, Malaysia exported 25 mil tonnes of LNG valued at RM47 billion or 6% of exports. LNG export contributes significantly to Malaysia’s income and international currency reserves. Major customers are Japan, Korea, Taiwan and China
  • Malaysia is the second largest LNG exporter in the world after Qatar
  • PETRONAS LNG Complex in Bintulu Sarawak has three liquefaction plants with a total combined production capacity of 25.7 MTPA (million tonnes per annum)
  • Malaysia also exports smaller volume of gas through pipeline to Singapore
  • In addition to domestic production, Malaysia also sources piped gas from Indonesia, Malaysia-Thailand Joint Development Area (JDA) and Malaysia-Vietnam Commercial Arrangement Area (CAA)
  • Malaysia also imports LNG via the first LNG regasification terminal (RGT) in Sungai Udang, Melaka which became operational in May 2013. The RGT is owned by PETRONAS Gas Berhad and has a capacity of 500 mmscfd