Gas Supply Scenario
Challenges and Opportunities
By
Abdul Razak Saim
Senior Manager, Malaysia Gas Management
Gas Business Unit, PETRONAS
Energy Forum
Sheraton Imperial Hotel, Kuala Lumpur
9th August 2010
Presentation Outline
Peninsular Gas Utilisation System
Gas supply chain
Gas supply demand outlook
Challenges in meeting growing gas demand
Mitigation options
Roles of stakeholders
Moving forward
PGU ProjectsPhase 1 - 1984Phase 2 - 1992Phase 3 - 1997JDA - 2005
Upstream Capacities
Major Facilities
Fields developed 11
Major pipelines 923 km
Production capacity 2,500 mmscfd
Major Facilities
Pipelines 2,505 km
City Gates 27
Slugcatchers 3
Kertih GPPs 6 (2,060 mmscfd)
TTM GSP 1 (316 mmscfd)
Compressor stations 3
Melaka
Kuantan
Segamat
Jerneh
(1992)
Kuala Lumpur
Lawit (1997)
Bekok
THAILAND
JDA
(2005)
PM-3
(2003)
Angsi (2002)
SONGKHLA
Bintang
(2003)
Resak(2000)
KERTIH
Downstream Capacities
Duyong (1984)
Kangar
West Natuna ‘B’
(Indonesia - 2002)
Extensive infrastructure has been developed to spur the
development of gas industry in Malaysia
• Gas is a finite resources
• Production from domestic gas reserves declining.
More gas fields are developed to sustain the gas
production at current level
• Future domestic gas development will be more costly
due to :
High CO2
Deep water
Smaller size, scattered and remotely located
Challenges In Meeting Growing Gas Demand
• Gas supply from other sources - West Natuna B
(Indonesia), Joint Development Area (with Vietnam)
and Joint Development Area (with Thailand)
• More future gas import but it is challenging:
High import cost
• Demand side management
• Energy efficiency in gas utilisation
Mitigation Options
Gas industry transformation?
• Focus to achieve economic efficiency in order to secure
sustainable energy future
• Two important elements for consideration:
• The need to rationalise the cost of economic
intervention
• Remove market distortion by improving competition
How do we move towards gas open market?
• LNG regasification facility to facilitate LNG imports into
Peninsular Malaysia
• PGU system is open for third party access
• Gas market liberalisation to encourage competition
from other suppliers
• Market parity gas pricing
• In a market-based environment, price plays a vital role
to provide the right signals:
to reflect market-based pricing
right policies, rules and regulations
sustainability of gas industry
• The Nation need to decide on type of industries to be
encouraged in view of depletion of finite oil and gas
resources
Roles Of All Stakeholders
• Malaysia has done well to develop its oil and gas
resources
• The challenge is to ensure that the production and
utilisation of natural gas is managed responsibly for the
benefits of the nation, for the present and future
generations
• Going forward, as a nation, we need to encourage
greater energy efficiency and conservation of a
resource that is finite, yet highly valuable
Moving Forward