Oil, Gas And Energy Industry Strong Enough To Shape M’sia Energy And Economic Landscape

KUALA LUMPUR, May 24 (Bernama) -- Malaysia’s oil, gas and energy industry continues to be in a position of strength and, in the year ahead, will steadily build stronger foundations for the country’s energy and economic landscape despite the uncertainty in crude oil prices movement. The Performance Management Delivery Unit (Pemandu) said although oil prices surged to a 17-month high in December 2016, after the Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC producers agreed to reduce output in a landmark deal, it has yet to be seen whether oil prices would bounce back in 2017 or maintain its new norm. “Amid various challenges projected in 2017, the government, in partnership with the private sector, will continue efforts to ensure the robustness of Malaysia’s energy infrastructure,” it said in the National Transformation Programme Annual Report 2016 released Tuesday. It said efforts to diversify the country’s sources of energy and the move towards a market-based pricing would remain in the agenda. “The coming year will focus on the implementation of the third party agreement (TPA) with the completion of the second regasification terminal in Peninsular Malaysia located in Pengerang, Johor,” it said. It said the TPA, as part of the gas market liberalisation initiative, would allow third parties to access and utilise regasification of imported liquefied natural gas (LNG), transmission and distribution facilities. Pemandu said Malaysia’s continued economic growth was expected to drive further demand for natural gas, which powered more than 40 per cent of the country’s electricity production. “This will require a diverse, stable and secure supply of gas from local sources, as well as, LNG imports. A robust gas market would also catalyse new industries, creating new revenues for the country,” it added. Last year, the oil, gas and energy industry contributed to 14.5 per cent of the country’s Gross Domestic Product and US$41.77 billion (RM179.7 billion) to Gross National Income, as well as, generate US$95.65 billion (RM411.5 billion) in investments. (US$1 = RM4.30) As for government income, 14.7 per cent was attributed to oil and gas revenue. -- BERNAMA