KUALA LUMPUR – The Malaysian gas market is expected to be fully liberalised in 2022, when the remaining regulated gas tariff ends on December 31, 2021, said Malaysian Gas Association (MGA) president Hazli Sham Kassim.
He said that in transition towards a fully liberalised gas market, it is imperative that all parties, including policymakers, regulators, industry players and customers, understand the liquefied natural gas (LNG) market and its dynamics, including the different factors influencing pricing and contracts.
Besides, it is also imperative for market players to understand the perspective of policymakers on the gas market.
“Malaysia is on the course to transition towards a vibrant and sustainable gas market when it is finally fully liberalised.
“MGA envisions a liberalised gas market environment where gas is traded on a willing-buyer and willing-seller market basis and on a level playing field,” he said in a statement in conjunction with a virtual roundtable held today.
He added that to navigate in the unfamiliar environment, consumers should be aware of the different types of pricing, supply contracts and the risks associated.
The regional LNG spot pricing volatility has seen both extreme ends where it crashed below US$2/MMBtu in mid-2020 but soared above US$20/MMBtu early this year.
The roundtable offered a platform for senior leaders, policymakers and key stakeholders such as the Economic Planning Unit, the Energy and Natural Resources Ministry, Petronas, MISC Bhd and the Federation of Malaysian Manufacturers to discuss the LNG market and deliberate its impact on the local gas market.
The roundtable participants were joined by more than 100 observers from among the Malaysian gas players, including third-party access import and shipping licensees. – Bernama, March 12, 2021
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