The Dilemma of Gas Importing and Exporting Countries - Malaysia
Gas consuming/producing
region
Borneo
Peninsular
Consuming
LNG Liquefaction Complex, Bintulu
Producing
offshore Sarawak & Sabah gas fields
Producing
Offshore Peninsula gas fields
Imported gas
Indonesia
JDA
CAA
Imported LNG
RGT Sg Udang, Melaka
RGT Pengerang
Dynamics
Industrilisation
Government encouraged using natural gas
Geographical disconnection
Decade long price control
Ageing and depleting gas fields
Natural gas prices
Gov aim
Steady gas reserve
affordable to domestic market
Implemented subsidies
Led to forgone revenues for Petronas
Gov actions to meet
demand growth
Enact Subsidy Rasionalisation
Programme in 2010
New tax and investment incentives
PGB developed RGT
Outlook
Malaysia to import more
LNG in the future
LNG contracts expiring
Should Malaysia divert uncontracted
LNG from Bintulu to Peninsula?