Malaysia, Thailand Strengthen Energy Ties With New MTJDA Agreements

By Kenny Teng

BANGKOK, Sept 14 (Bernama) -- Malaysia and Thailand Monday strengthened their energy partnership with the signing of a new Production Sharing Contract (PSC) and Gas Sales Agreement (GSA) for Block A-18-01 in the Malaysia-Thailand Joint Development Area (MTJDA).

Economy Minister Akmal Nasrullah Mohd Nasir, who is on a two-day working visit to Thailand, said the agreements, signed in conjunction with Gastech 2026 here, would ensure continuity in the development of the block while reinforcing investor confidence and supporting the energy security of both countries.

Akmal said the move came at an important time as natural gas continued to play a major role in Malaysia’s energy system and socioeconomic growth, with the fuel projected to account for 56 per cent of the country’s total primary energy supply (TPES) by 2050.

“The priority is to ensure that energy resource development continues to attract investment and is supported by industry capabilities that can create sustained value.

“Certainty, continuity and confidence are essential to unlock investment, sustain production and secure long-term value,” he said in a statement on Monday.

The Block A-18-01 PSC was entered into by Malaysia-Thailand Joint Authority (MTJA), PC JDA Limited and PTTEP JDX, while the GSA also involves PETRONAS and PTT Public Company Limited.

Akmal said the progress achieved through Block A-18-01 provided a strong foundation for the continued development of the MTJDA, which represents nearly five decades of cooperation between Malaysia and Thailand.

He said the momentum from the latest agreements should pave the way for the next phase, involving the development of a new PSC and GSA for Block B-17-01.

“The momentum created today should pave the way for the next phase of developing a new PSC and GSA for Block B-17-01, as we continue to unlock the full potential of MTJDA for the benefit of both nations,” he said.

Akmal also said Malaysia looked to industry partners and contractors to bring the capital, technology, expertise and long-term commitment needed to develop the resource in a commercially viable and responsible manner.

Thai Prime Minister Anutin Charnvirakul, Thai Energy Minister Akanat Promphan and Akmal witnessed the signing ceremony.

Meanwhile, Akanat described the MTJDA as a successful model of bilateral cooperation built on trust and shared interests, saying the new agreements marked another important phase in Malaysia-Thailand energy cooperation.

He said the initiative had the potential to stimulate investment, support sustainable development and contribute to shared prosperity.

-- BERNAMA