Kuala lumpur: A fully liberalised gas market based on a willing seller-willing buyer principle, coupled with the removal of the gas price cap, is needed to attract more international players and spur a more competitive industry, said Malaysia Gas Association (MGA) president Abdul Aziz Othman. He stated that gas supplied to non-power users is already traded on a willing seller-willing buyer basis, with prices negotiated using the Malaysia Reference Price (MRP) and liquefied natural gas prices as references.
According to BERNAMA News Agency, Abdul Aziz emphasized that gas supplied to the power sector, while also linked to the MRP, remains subject to a price cap of RM35. He noted that the only issue is the price cap placed on gas, and if Malaysia wants more players in the country, price control should be eliminated. In a fully liberalised market, gas should be sold on a willing seller-willing buyer basis.
Abdul Aziz, who is also the chief executive officer of Petronas Gas Bhd, mentioned that removing the price cap would encourage greater participation by international gas suppliers, fostering a more competitive market that would ultimately benefit consumers and the industry. He further highlighted that Malaysia must recognize its limited domestic gas resources while demand continues to grow.
He was speaking to Bernama on the sidelines of MGA's 40th Annual General Meeting and the official launch of its 40th anniversary celebration. The event brought together MGA members, industry leaders, and policymakers to commemorate four decades of collaboration while looking ahead to the future of Malaysia's energy system.
Established in 1986, MGA has grown into Malaysia's leading gas industry association, representing 158 corporate members across the gas value chain, from upstream activities to end consumers. For four decades, the association has served as a neutral platform for collaboration between industry, government, and other stakeholders, promoting the sustainable development of Malaysia's gas industry through evidence-based advocacy, active engagement, and continuous education.
Today, Malaysia's natural gas industry contributes approximately RM52 billion annually to the national economy and supports more than 80,000 jobs nationwide. Abdul Aziz stated that natural gas remains an important component of Malaysia's energy mix and will continue to play a critical role as the country advances its energy transition. MGA will continue to ensure the industry's voice is heard by fostering constructive, forward-looking engagement with policymakers and stakeholders, contributing to Malaysia's long-term development.