Oil & Gas Companies Told To Promote The Use Of Natural Gas - PM Najib

KUALA LUMPUR, May 8 (Bernama) -- Oil & gas companies can help promote the use of natural gas, together with renewable energy as the cleaner fuel option to sustain economic growth, Malaysian Prime Minister Najib Razak said. He said now is the right time to encourage the adoption of natural gas in new markets as prices have become attractive, aided by the right investment in infrastructure. "I am hopeful that companies and governments can form ‘smart’ partnerships to unlock the full potential of natural gas as a viable option, which makes both commercial and environmental sense. "It is important that we see these two motives as supporting one another, not being in opposition," he said in his keynote address at the 19th Asia Oil and Gas Conference here Monday. He said oil & gas companies can also help push the technological envelope to reduce the amount of greenhouse gas emitted during industry processes. "I understand, there have been some strides taken in the development of carbon dioxide (CO2) management technologies, including by Petronas (the Malaysian oil and gas company). I hope more can be done to achieve a quantum leap in improving and deploying these technologies," he said. Najib said the abundance of gas discoveries had helped spur growth of the liquefied natural gas (LNG) industry in the Middle East, the Asia Pacific and Australia. “The emergence of more producers, increased supplies and competitive gas prices has transformed LNG into an attractive energy resource for emerging economies, and one that also had the benefit of being far less carbon intensive. "I strongly believe that industry players can collaborate to support the wider adoption of LNG by offering innovative commercial solutions and technical assistance to nations with a fledgling interest in this sector," he said. He said the International Energy Agency (IEA) had predicted that global energy demand would double by 2050, not least because of a rising global population, and legacy industry players need to work harder and realign strategic priorities to remain relevant and sustainable in the long run. Najib said under the government's Economic Transformation Programme (ETP), the energy sector is set to register annual growth of five per cent up to 2020, transforming Malaysia into a regional oil trading and storage hub and ensuring long-term energy supply security to the domestic market. He said the recent US$7 billion investment by Saudi Arabian Oil Company (Saudi Aramco) in Petronas' Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Malaysia's southern state Johor, exemplifies Malaysia's ongoing attractiveness as an energy investment destination pf choice. "This clearly positions the oil & gas industry as one of the biggest drivers of the ETP. This investment also makes Saudi Aramco the single largest investor in the country so far," he said. Earlier, Najib launched the world's first floating LNG facility, PFLNG Satu, owned by Petronas. He said PFLNG Satu is a game changer for the industry, bringing together the liquefaction, production, storage and offloading processes of LNG to an offshore gas field. "We are proud that Petronas has developed this technology, which will maintain the company's technical edge as a key global LNG supplier," he added. Themed, "New Reality-Driving a New Approach", the two-day conference brings together eminent industry leaders, policymakers and delegates from around the world. -- BERNAMA