Malaysia's Natural Gas Industry Transitions Towards Lower-Carbon Future

The Malaysian Gas Association (MGA) is celebrating its 40th anniversary this year, and has witnessed significant transformation in the natural gas industry since its inception. Founded in 1986 by leading global oil and gas companies, including PETRONAS, Shell, Esso, BP, and Caltex, MGA's purpose is to facilitate the growth of the sector in Malaysia by positioning natural gas as a clean and efficient source of energy.

According to MGA president Abdul Aziz Othman, 'MGA's vision has evolved from helping to build Malaysia's gas industry to helping shape how gas supports Malaysia's energy security, competitiveness, and lower-carbon future.'

The National Energy Transition Roadmap (NETR) laid out Malaysia's path to wean off coal and increase reliance on natural gas as a main energy source. The Natural Gas Roadmap (NGR), which will be approved by the Cabinet, formalizes the role of natural gas as a transition fuel and redefines how it is priced, supplied, and regulated nationwide.

With natural gas contributing to 42.4% of total primary energy supply in 2020, and expected to reach 56% by 2050, MGA will continue to play a crucial role in navigating the industry's transition towards a lower-carbon future.