Kuala lumpur: The government is prioritising Malaysia's energy security by diversifying access to large-scale gas resources that could broaden supply options and enhance the country's energy resilience.
According to BERNAMA News Agency, the Economy Ministry stated that amid uncertainty in global energy markets caused by geopolitical tensions, Malaysia remains focused on diversifying its energy supply sources to reduce reliance on any single country or market. The ministry emphasized that any imports of crude oil from any country, including Russia, must adhere to international trade policies and legitimate commercial channels. This includes considerations such as pricing, product specifications, logistics, payment methods, transportation, insurance, and prevailing laws and regulations.
The ministry was responding to Senator Mohd Hasbie Muda's inquiry regarding the potential long-term benefits of the proposed 20-year crude oil, gas, and diesel supply agreement with Russia, as well as Malaysia's participation in gas field development in Turkmenistan. It was noted that opportunities to develop gas fields in Turkmenistan would be assessed based on their commercial merits and potential contribution to diversifying Malaysia's long-term gas supply.
On June 20, Petroliam Nasional Bhd (Petronas) signed several agreements with two Turkmenistan companies, including a Production Sharing Agreement (PSA) covering Offshore Blocks 19 and 20, alongside a Cooperation Agreement (CA) for a 2D seismic survey in the northern offshore blocks. Petronas highlighted that these agreements reflect a shared commitment to unlocking new opportunities, enhancing subsurface understanding, and strengthening Turkmenistan's position as a key contributor to regional and global energy supplies.
The ministry outlined that the advantages of diversifying the country's energy sources could be realized through three key areas: enhancing national energy security by ensuring long-term access to energy supplies, providing greater flexibility in managing fuel prices and subsidies, and increasing the range of supply options. Furthermore, this strategy would create opportunities for Malaysian oil and gas services companies to participate in international value chains, strengthen the country's technical expertise, and generate high-value jobs.
However, the ministry acknowledged that this approach does not imply Malaysia would be entirely insulated from fluctuations in global energy prices. Nonetheless, access to more diverse and competitive energy supply sources potentially supports supply stability and reduces exposure to volatility in global energy markets. The ministry concluded that this would position Malaysia more robustly to safeguard the interests of the rakyat, industry, and the national economy over the long term.