power growth

7/28/2019 Power Growth

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Gas is a clean and efficient source of energy,

supporting todays concerns. It drives progress

and growth for the betterment of living standardsfor all of us.

The tagline: Powering Growth, encapsulates

the relevance of Gas to the consumer, and also

reflects the aspirations and the

potential of the gas fraternity

as represented by the Malaysian

Gas Association (MGA), to meet

challenges while promoting further thedevelopment of the gas industry in the region.

The Powering Growth design is represented by

the typographic G, to serve as the common icon

to denote associative synergy in realising and

harnessing the potential of the Gas industry.

The arrow incorporating an uptrend movement,

enhances MGAs optimistic drive to increase gas

utilisation through research and developmentalinitiatives, while promoting its usage as the global

energy source of choice.


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M a la ys ia n N a tu ra l G a s C h a inMalaysian gas activities span the entire natural gas chain.

This includes gas processing plants, liquefaction plants, pipeline,

transmission, marketing and trading of LNG, gas district cooling,

Natural Gas Vehicle (NGV) and supply of industrial utilities. It began

with Malaysias first ever oil well, struck on 22 December 1910 in

Miri, Sarawak. In 1965, natural gas began to be supplied to

households and local industries in Miri, Sarawak, with associated gas

from the West Lutong oil field. Today, Malaysia is the worlds largest

LNG producer from a single location, the worlds largest owner of

LNG production capacity and has interests in more than 10,000km

of natural gas pipelines worldwide.


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Mala ysia exports 23 million tonnes per a nnum o f

gas in the form of LNG to traditional markets like

J apa n, Korea a nd Ta iwa n, as well a s to the US a nd

Europe. Ma la ys ia supplies 49 per ce nt of Ta iwa ns

LNG needs, 25 per cent of J a pans requirements

and 21 per cent of that of South Korea. Globally,

the country meets a whopping 21 per cent of total

LNG need s. The LNG Ma la ysia s upplies to the

wo rld is process ed from feed ga s from C entral

Luconia offshore S araw ak and liq uefied a t s ub-

freezing temperature at the three plants owned by

Malaysia LNG Sdn Bhd (MLNG), Malaysia LNG Dua

S dn B hd (MLNG Dua) a nd Malays ia LNG Tiga Sd nBhd (MLNG Tiga) res pect ively in the P ETRONAS

LNG Complex in Bintulu, Sarawak. In 2004, the

Egyptian LNG project which came on stream six

months ahead of schedule signifies Malaysias first

LNG production plant outside the country.

Ma la ysia n ga s fields a lso feed a domes tic na tura l

gas transmission pipeline system with over two

billion cubic feet per day of processed gas, geared

for power and industrial use. A major milestone inthe development of the local gas industry was the

establishment of the Peninsular Gas Utilisation

(P G U) netw ork in 1984. P ETRONAS em ba rked on

this project to be able to process gas from the

fields off the S ta te o f Terengganu in the eastern part

of P eninsula r Ma la ysia a nd trans port it through a

netw ork of pipelines to va rious pa rts of the co untry.

Toda y, a tota l of 2,550km of ma in and la teral

pipelines have been built, traversing the length and

breadth of the country while extending the pipelineto S inga pore in the s outh a nd Thailand to the north.

There are six gas processing plants in operation

with a ga s production tota l sale ca pac ity of 2,750

mmsc f/d, inclusive of s ta ndby c apa city, in ad dition

to producing by-products such as ethane, pro pa ne,

butane a nd condensa te. The PG U project has mad e

a significa nt comm ercia l impa ct on g a s utiliza tion in

P eninsular Malay s ia , w ith the prod uct ion volume

growing s tea dily from les s tha n 50 mmsc f/d in

1984 to o ver 2,000 mm sc f/d in 2005. In 2004, the re

was an approximate 4.4% increase in gas supplied

by the P GU s ystem on the bac k of higher demand

from the power sector.

P rocessed gas is channeled towards the domestic

power sector, which consumes up to 69 per cent of

the tota l, non-powe r sec tor (25 perce nt) a nd is a lso

exported to S inga pore (6 percent).C omplementing

the PG U network, Ga s Malaysia Sd n. Bhd. (G MSB ),incorporated in May 1992, undertakes to distribute

natural gas to end users. GMSB develops,

implements a nd o perates pipelines c onnecting

P ETRONAS city-ga te s tat ions to end users in the


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commercial a nd industrial s ect ors,

a s well as homes. C urrently, GMS B

has more tha n 800 kilometers of

pipelines in P eninsula r Malays ia

tra nsporting a n a vera ge of 90

mms cf/d of ga s so ld to industrial,

c ommercial and res identia l

cus tomers .

Although oil remains the most

importa nt fuel in the ec onomy, the

use o f natura l gas is rap idly

expanding as there is a great desire

for c lea n energy a nd b etter fuel

a lternative that w ill a llow na ture to

co-exist alongside human

enterprise. Being a clean primary

energy s ource, a nd to prevent

depletion of the countrys oil

res erves , the Ma lays ia n Go vernmenthas since the early 1980s promoted

greater use of natural gas.

Regulations such as the National

Depletion P olicy, 1980; the Four-Fuel

Diversific at ion S trateg y, 1981; and

the Five-Fuel Divers ifica tion P olicy,

1999, a ll aim to reduc e the co untrys

reliance on oil while promoting other

sources of energy, including na tural

ga s .

The increase in utilis a tion of na tural

gas has been marked in power

generation. From making up only

22 percent of the generation mix in

M a la y s ia n N a t u ra l G a s C h a in( c o n t i n u e d )

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1990, natural gas constitutes about 65 percent

to 70 perce nt of this mix toda y, and is pla nned to

remain in the power generation mix in the future

at between 50-60 percent. Despite an emphasison coal in power generation, overall gas

utiliza tion in Ma la ysia is expecte d to increas e a t

4 percent per annum until 2020, on the back of a

g rowing economy and increased use in the non-

power sec tor.

In the State of Sabah, East Malaysia, the biggest

consumer of natural gas is the methanol plant in

Lab uan. Another ma jor user is the ho t briq uette

iron plant, w hich is a lso in the free trad e z one ofLab uan. Na tural ga s is a lso being c hanneled

towa rds independent power producers.

Overs ea s , the Trans Tha ila nd-Ma lays ia (TTM) has

suc ces sfully comm iss ioned the pipeline c arrying

the J oint Development Area g a s into the

existing P GU s ystem a t Cha nglun, in the S tate

of P erlis, w hich s upplies cust omers in the

northern reg ion o f P eninsula r Ma la ys ia. TheTTM pipe line is the la tes t a dd ition to the

growing interconnection of cross-border ga s

infra s truc ture in ASEAN and charts another

important step towards the realisation of the

Trans -AS EAN G a s P ipeline (TAG P ) ne tw ork.

Besides meeting the domestic demand, gas has

also been exported to Singapore since 1992.

Ba sic engineering design w a s also interna lly

conducted a nd completed for the sec ond

S inga pore P ipeline P rojec t, w hich is s c heduledto b e c ompleted b y mid 2006. A miles tone w as

created in 2004 when P ETRONAS signed a G a s

S ales Agreeme nt w ith B ritish Ga s Tra ding Ltd.

for the supply of natural gas in the form of LNG

to the UK beginning 2008.


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Natura l Gas Suppor ts

M alays ia s N atio n al D e ve lo p m e n tThe energy sector is considered the life provider of

a nation. Natural gas is an important component of

Malaysias fuel diversification policy to support

national development. This will ensure that the

natural gas sector will continue to progress well in

the near and far future.


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A lot of measures and initiatives are being

undertaken in order to ensure sustainability of

Ma la ys ia s natural ga s s upply through c ontinuous

and relentless efforts to develop and commercia lisethe natural gas reserves of the nation.

Future utilisa tion of g a s a s feeds toc k will se e the

sm all and m edium sc ale industries (SMI) suc h a s

ceramic, glassware, pulp, textile, rubber and steel

fabricators, as having strong potential since natural

ga s w ould provide a n id ea l fuel a lternative for

combustion, heating, in chemical and

meta llurgical industrial manufacturing processes .

The co -gene ration ma rket is a nother signific antsegment where potential markets are seen. In the

residential and commercial sector, unit electricity

consumption will continue to increase in the

period 1999 to 2020 due to an increase in per

ca pita G DP g row th coupled w ith growing

urbanization and rising average incomes.

In moving forwa rd, Ma la ys ia a nd P ETRONAS will

continue to strengthen its position as an

integrated ga s pla yer in AS EAN, expa nd its globa lLNG portfolio b y c a pturing ma rkets in the fa st

g row ing Atla ntic Ba sin a nd c a pture more va lue

out of Malays ia s ga s cha in. With the ongo ing

efforts in the country and abroad, Malaysia is

poise d to play a significa nt role in the globa l

gas industry.


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The MGA is a Non-Profit orga nisa tion a nd o ffers the

following categories of membership:

a) Full Corporate MembersOpen only to incorporated c ompa nies enga ged in

the commercial production, separation, treatment,

bulk distribution or wholesale of gas.

b) Ordinary Corporate Members

Open to any c ompa ny or organisation, whether

incorporated or unincorporated, interested in the

a dva ncement of the ga s industry in Ma la ysia.

c) Ordinary Members

Open to a ny individua l interested in the

ad vanceme nt of the ga s industry in Malays ia .

C urrently op en to employee(s) of Co rpora te

members.

d) Honorary Members

Institutions or individua ls tha t the Co uncil ma y

from time to time recognise as having contributed

significantly to the objectives of the Association.

Anticipating the important role that natural gas is set to play in the Malaysianenergy scene, PETRONAS took the initiative to interest some key players in

the Malaysian gas industry to form the Malaysian Gas Association, which was

duly registered on 21 July 1986, as Persatuan Gas Malaysia.

Estab lis h m en t o f th e

M a la ys ia n G a s A s s o c ia tio n (M G A

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To collect , analyse and disseminate via

periodic publications, information on gas

indus try a ctivities .

To st imulate the development o f the gas

indus try in Malays ia .

To enhance unders tand ing o f the genera l

public a bout the role of ga s a s c lea n and

efficient energy to the na tion.

To promote friendship and cooperation among

organisations a nd professionals involved in g as

rela ted a ctivities .

To actively participate in worldwide ga s ac tivities

under the a uspices of the Interna tiona l Ga s

Union (IGU) with a view to advance knowledge

a nd resea rch in the gas industry.

Objectives

To provide a forum in which members o f the

Ass ociation ca n disc uss ma tters relating to ga s

(exploration, product ion, s epa ration, ga thering,

transmission, liquefaction, distribution, storagea nd utilizat ion).

To serve as the foca l po in t and channe l o f

communication with the Government on

ma tters of c oncern and interest to the industry

including formulation and recommendations on

policies, regulations, safety, investment

incentives a nd rela ted matters.

To advance knowledge, learning, and st imulate

research in the area of ga s tec hnology .

To promote uniformity and sa fe ty o f practices

and sta nda rds rela ting to the industries.


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MGA is a member of the International Gas Union (IGU)which is recog nised a s the

principal w orldw ide forum o f the g a s indus try. Founded in 1930 w ith the o bjective to

study all aspects of the gas industry and to advance its progress from both technical

and ec onomic a spects, the IGU:

cultivates fraternal relations amongst its members,

organises conferences, and

encourages the exchange of information between its members and also betweenIGU and other international organisations concerned with energy.

The MGA is a window through which Malaysians ca n ga in ac ces s to

the world of gas, principally by participating in the activities organised

by IG U.

The MG A is a lso a memb er of G AS EX (G a s Informa tion Excha nge in

Wes tern P a cific Area ) a long w ith fourteen o ther co untries . The a im of

GASEX is to strengthen information exchange in order to develop the gas

industry in the area and seek solutions to issues facing member countries. Majora ctivities of G AS EX include orga nising o f biennia l conferences a nd e xhibitions .

One of the significant achievements of the MGA thus far is hosting the tenth LNG

International Conference and Exhibition in 1992, in Kuala Lumpur, Malaysia.

This p remier event on LNG a ttrac ted so me 4000 participants including de leg a tes ,

exhibitors a nd visitors to the exhibition. MG A a lso hos ted the G AS EX 96 Conference

a nd the NG V 96 Co nference a nd Exhibition in 1996.

M G A In te rn a tio n a l A ffilia tio


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To a c hieve MG As ob jec tives , the fo llow ing a ctivities ma y b e underta ken.

Organising these activities successfully will require the full support of all

members .

Coordinate and liaise with relevant Government departments and regula toryag encies to discuss and resolve iss ues pertaining to the g a s industry.

Participate actively in the formulation, drafting of and review of re gula tions ,s ta nda rds and b est p ra ctices in the industry.

P ublish monthly/q uarterly new sletter to memb ers/ta rget g roups on g a sactivities /de velopment in Malays ia and the res t of the w orld.

Co nduct S emina rs a nd C onferences w ith the a im of providing know ledg eon the ga s industry and technology.

Launch Publicity Campaigns to encourage and promote the use of gasand ga s o pera ted/fired a pplia nces .

Hold Tec hnica l Lectures to d iss eminate informa tion on the ga s industry. Orga nise a nd s ponso r conferences relate d to ga s industry in conjunction

w ith institutions of higher learning . Establish a library a nd to ma intain ga s proceedings , sa fety standa rds, etc. Organise social functions to enable MGA members to meet informally and

promote goodwill.

Ac tively involve a s G uest S pea ker and pres ent papers in Ga s C onferences . Esta blish an MGA P rize Awa rd, through donations, for the benefit of

resea rchers or persons associated with the gas industry to encourage the

study o n ga s related technologies in Malays ia.

M G A A c tiv itie s1


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Consistent with its policy to promote wider

use of natural gas, the Government on

4 February 1993, gazetted the Gas Supply Act

1993 pertaining to gas reticulation to the

industrial, commercial and residential sectors.

M alays ian G as S u p p ly A c/ 1 5


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The Act provides for the a ppointment a nd

functions of a Director G enera l of Ga s

Supply, the licensing of suppliers of gas to

cons umers and regula tions w ith respec t to

sa fety of opera tion and the commercial

a spec ts in ga s pricing.

The G overnment has implemented the G a s

Supply Regulations in 1997, which will be

enforced together with the G as S upply Act

1993. The regula tions e nco mpa ss a mong

lice nsing a nd reg istra tion o f the insta lla tion,

inspec tion a nd registra tion of contracto rs,

competent persons, ma nufac turers and

importers of gas equipment, investigation

and prosecution, and code of ethics to

ensure safety in the gas industry.

With rega rds to the sa fety as pects of the

ga s industry, the Petroleum Sa fety

Measures Act was gazetted and enforced in

1984. The Act provide s for regula tory

req uirements for sa fe op erations involving

the handling, s torage a nd transportation of

petroleum through pipelines by road , ra il,

sea or air.

To da te, the Ma la ysian G a s Industry ha s

achieved significant milestones with respect

to safety in its operations and its

ac complishments have been b estowed with

several national and international safety

awards .

R e g u latio n s an d S afe ty


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Kindly sub mit your ap plica tion b y c ompleting either:

a ) PGM FORM I for ad miss ion a s FULL/ORDINARY CORPORATE MEMBER, or

b) PGM FORM II for admission as ORDINARY MEMBER.

(C urrently ope n to em ployee o f Full/Ordinary C orpora te Memb ers)

S end the duly completed form together with the annua l fee by w ay of a c ross ed

cheque or bank draft payable to Malaysian Gas Association.

The fees a re as follow s: RM5,000 Full Corpora te Member (5 nominees)

RM1,000 Ord inary Corpora te Member (5 nominees)

RM50 Ord ina ry Me mb er (individual)

SECRETARIAT

MALAYSIAN GAS ASSOCIATION

LEVEL 54, TOWER 1

P ETRONAS TWIN TOWERS

KUALA LUMP UR C ITY C ENTRE

50088 KUALA LUMP UR

MALAYS IA

EXECUTIVE SECRETARY

MR. ZENORAI RAMBLI

TEL : +(6)03-2331 3181

FAX : + (6)03-2331 2888 / 1345E-mail : [email protected] m.my

ASSISTANT TO EXECUTIVE SECRETARY

MS . J EANNIE LEE

TEL : + (6)03-2331 4687

FAX : + (6)03-2331 2888 /1345

E-mail : [email protected] om.my

http//:www.malaysiangas.com.my

All payments and correspondence to be sent to:

H o w to B e c o m e a M e m b e r6


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Design: Johan Design Associates, Malaysia.

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