Kuala Lumpur: The Ministry of Economy is set to launch the Natural Gas Roadmap in the second or third quarter of this year to boost investments in the sector, announced Minister Datuk Seri Rafizi Ramli. The government aims to enhance the natural gas sector's contribution to economic growth, which currently stands at RM52 billion.
According to BERNAMA News Agency, Rafizi emphasized the government's commitment to overcoming regulatory challenges and seizing opportunities to develop a robust gas infrastructure. This initiative aims to ensure a long-term, secure natural gas supply for Malaysia. During his keynote address at the Malaysian Gas Symposium (MyGAS 2025), Rafizi highlighted the roadmap's focus on financing access and gas infrastructure expansion, which is expected to create technical jobs and sustain the industry's socioeconomic impact.
Rafizi noted that a clear direction and strong policy support from the government would enhance confidence in the banking and financial sectors, positioning the gas sector as a backbone of the national economy. Acknowledging the fragmented nature of the global gas market compared to crude oil, Rafizi stressed the importance of the National Gas Roadmap in maintaining economic competitiveness amid potential future gas shortages.
The roadmap will address strengthening the gas market mechanism and infrastructure investment, with decisions to be refined and implemented promptly upon approval. Rafizi further pointed out Malaysia's growing power needs and the increasing role of natural gas in the country's energy mix, projected to reach 56 percent by 2050. Contrary to the perception of natural gas as a transitional fuel, Rafizi argued that it represents a long-term destination for Malaysia and other developing nations.
Despite the commitment to developing the natural gas industry, Rafizi acknowledged the challenge of declining natural gas reserves, particularly in Peninsular Malaysia and Sabah. With many gas fields reaching maturity and limited prospects for new discoveries, the government plans to diversify natural gas sources and increase liquefied natural gas (LNG) imports to ensure supply security.
Rafizi indicated that Malaysia might transition from being the fifth largest LNG exporter to a net importer within the next decade or two due to growing domestic demand outpacing supply. This shift necessitates enhanced gas liberalization and a review of regulations, such as domestic price controls, to attract participation in the gas-to-power market and ensure sufficient infrastructure capacity for third-party entry.
The MyGAS 2025 symposium, organized by the Malaysian Gas Association, served as a platform to discuss critical challenges and issues in the gas industry, with the theme 'Fuelling a Sustainable Gas Industry's Transition'.