Govt finalising natural gas roadmap to strengthen energy security

Govt finalising natural gas roadmap to strengthen energy security

The Star Online - Business·2026-10-22 19:00

KUALA LUMPUR: The government is finalising the Natural Gas Roadmap (NGR) to guide the coordinated development of Malaysia’s gas sector in line with national policies and the 13th Malaysia Plan, said Economy Minister Akmal Nasrullah Mohd Nasir. 

"I wish to thank all stakeholders who have contributed to this process. A roadmap will matter only if it translates into projects, reforms and measurable outcomes,” he said in his pre-recorded video for the Malaysian Gas Symposium (MyGAS) 2026 today.

He said Malaysia must strengthen its gas supply resilience amid global market uncertainty and rising energy demand from advanced manufacturing, data centres and digital industries.

"We have seen how quickly global conditions can change. Disruptions to international liquefied natural gas (LNG) trade this year have affected availability and heightened price volatility across our region.

"The lesson is straightforward: Malaysia must not depend on favourable global market conditions. We must strengthen our own resilience -- through diversified supply, sound procurement, infrastructure readiness and effective market arrangements.

"This means supporting the development of domestic gas resources, diversifying sources of imported LNG to complement domestic supply, and ensuring that infrastructure is available to deliver gas to consumers,” he said.

He said the development of domestic gas resources must account for the differing resource positions and development needs of Peninsular Malaysia, Sabah and Sarawak, in collaboration with the respective state governments and relevant industry players.

As a country that both produces and imports gas, he said Malaysia must also continue to strengthen relationships with supplying countries and regional partners, while maintaining its standing as a reliable participant in international gas trade.

Akmal Nasrullah said natural gas would remain important for electricity system flexibility, industrial production and high-value economic activities.

Under the National Energy Transition Roadmap’s (NETR) Responsible Transition pathway, natural gas is projected to account for 56 per cent of Malaysia’s total primary energy supply by 2050, supporting reliable electricity supply as renewable energy expands.

The government has agreed to the development of the Third Regasification Terminal (RGT3) in Lumut, Perak, to strengthen Malaysia’s long-term gas supply security.

Targeted to commence commercial operations in the second quarter of 2029, RGT3 is expected to enhance the resilience and flexibility of the country’s gas supply infrastructure, support growing domestic energy demand and reinforce investor confidence in Malaysia’s energy security.

He said technologies such as carbon capture, utilisation and storage as well as biomethane offer further opportunities where they are technically suitable and commercially viable.

"I encourage the industry to demonstrate progress through measurable reductions in emissions. We must create more economic value from every unit of gas, while reducing its environmental footprint,” he said.

Meanwhile, Ministry of Economy secretary-general Datuk Seri Nor Azmie Diron said the NGR aims to balance energy security, affordability and environmental sustainability, while also addressing the differing gas development needs in Peninsular Malaysia, Sabah and Sarawak. 

On new gas infrastructure for Peninsular Malaysia, he said the development of the regasification terminal in Lumut, Perak and Yan, Kedah will add more than 1,000 million standard cubic feet per day (MMscfd) of capacity, strengthening energy security, particularly across northern Peninsular Malaysia. 

In Sabah, further investments will focus on developing virtual pipeline systems as well as exploring offshore gas sources on the East Coast and future regasification terminals, in line with the Sabah Energy Roadmap and Master Plan 2040. 

"As for Sarawak, the NGR recognises the four gas hubs in Kuching, Bintulu, Samalaju and Miri that have been identified in the Sarawak Gas Roadmap,” he said. 

He said the roadmap would also improve gas market efficiency through third-party access and digital systems to facilitate gas trading and capacity booking.

Meanwhile, Malaysian Gas Association (MGA) president Abang Yusuf Abang Puteh said that amid growing global uncertainty and changing energy markets, the focus must now shift from identifying challenges to finding practical solutions that strengthen Malaysia’s energy security, resilience and long-term competitiveness.

He said one key lesson from our experience is that every part of the energy system is interconnected, and our efforts must be equally collaborative.

"Gas supply must reach the people and industries that need it. Infrastructure must be reliable and ready for changing demand.

"Projects need investment, and investment depends on confidence. Each of us holds part of the solution; progress comes when we bring those parts together,” he said.

MyGAS 2026 is a half-day event organised by MGA, with this year’s theme, "Powering Confidence: Practical Pathways for a Resilient Energy Future”. - Bernama

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