Petronas Gas eyes clean and green future for Malaysia

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Petronas Gas Berhad (PGB) is preparing Malaysia, one of the world’s largest exporters of oil and gas, for an impending revolution in energy consumption, with cleaner and greener natural gas that is set to replace traditional fossil fuels.

The presumption that gas will one day become the energy resource of choice for consumers and commercial entities is driving PGB to build an import infrastructure that would meet future demands, said the company’s Managing Director and CEO, Samsudin Miskon.
“The country is growing, so the demand for gas as a primary fuel is increasing,” said Mr Samsudin. “The offshore fields, however, are depleting.
“We’re going to bring in LNG in liquid form, we are going to gasify it in our terminal in this form, and by having that available, the people can come up with so many things – be it a power plant, factories or industries.
“So, we’re actually integrating the growth by means of green, clean fossil fuels. There are so many fuels but the cleanest fossil fuel is still gas. We want the country to grow but in the cleanest and greenest manner.”
PGB is primarily involved in gas processing and gas transmission, having performed this task since its incorporation in 1983 before expanding its business operations in 1998 to include manufacturing, supplying and marketing of industrial utility products.
The company has six Gas Processing Plants in Kertih and Paka, in Terengganu. Natural gas from offshore fields are processed in these plants before being piped into PGB’s Peninsular Gas Utilisation pipeline network. From there, the usable gas is delivered to customers in the power, industrial and commercial sectors throughout Malaysia.

Import terminals

Key to the future of gas consumption in Malaysia is the building of two LNG terminals for import and regasification which will alleviate the nation’s energy supply challenges. The first one, with a capacity of 3.8 million tonnes per annum, is expected to open in mid-2012 in Malacca with another similar capacity terminal scheduled to be launched in 2016 in Pengerang, Johor, the latter to serve Petronas’s Refinery and Petrochemical Integrated Development (RAPID) project.
Some analysts expect the two terminals, and another to be built offshore, to boost PGB’s revenues by about 35 per cent by 2016, while others estimate gas demand to exceed 7mtpa by 2020.
Qatargas is expected to supply Petronas with 1.5mtpa over a 20-year period beginning in 2013. GDF Suez has also signed up to supply 2.5 million tonnes from August 2012 over a 42-month period.
Although PGB exports gas from its Terengganu operations to Singapore and other countries, growing local demand means the company is forced to import. This represents a significant evolution of the LNG scene in Malaysia because, though Petronas enjoys a virtual monopoly in the country, the need to bring in gas from overseas opens up the market for an array of suppliers to reach Malaysian customers.
“Once the gas market is ready, we are going to open up our PGU pipeline, what we call open access, so that parties can come in and use the pipeline,” said Mr Samsudin. “They will pay a tolling fee. You can have your own customers.
“We want to reach a point where we have an import facility and anyone who wants to bring in gas can do so and they just pay the rate. We are competitive and we will make sure our rates, if not the same, will be less than in the region.”
Mr Samsudin says this model would encourage gas vendors to use Malaysian pipelines to reach target customers, unearthing a wealth of investment opportunities for foreign companies looking to break into the regional market.

World Gas Conference

Mr Samsudin says PGB’s target is to have the Malacca facility operational during the World Gas Conference 2012 in Kuala Lumpur, Malaysia – the first time the triennial event is being held in the country.
The Conference is being held from June 4-8 2012 with the theme “Gas: Sustaining Future Global Growth” with more than 3,500 delegates from around the world expected to attend.
PGB is hoping Malaysian Prime Minister Dato Seri Najib Tun Razak will be able to officiate on the day the facility opens in tandem with the Malacca terminal’s opening.
“The whole world gas community will be here in town. We have no choice; we have to finish it by that time. It will bring a new era in terms of gas.”
Mr Samsudin says the Conference allows industry players from around the world to experience Malaysia’s import and regasification capabilities and boost investment opportunities in the country.
PGB ‘s revenues for the first quarter of 2011 was more than RM891 million, compared to RM802 million in the first quarter of 2010. Profit for the quarter was close to RM350 million, compared to RM277 million from 2010.

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Reading Time: 3 minutes

Petronas Gas Berhad (PGB) is preparing Malaysia, one of the world’s largest exporters of oil and gas, for an impending revolution in energy consumption, with cleaner and greener natural gas that is set to replace traditional fossil fuels.

Reading Time: 3 minutes

Petronas Gas Berhad (PGB) is preparing Malaysia, one of the world’s largest exporters of oil and gas, for an impending revolution in energy consumption, with cleaner and greener natural gas that is set to replace traditional fossil fuels.

The presumption that gas will one day become the energy resource of choice for consumers and commercial entities is driving PGB to build an import infrastructure that would meet future demands, said the company’s Managing Director and CEO, Samsudin Miskon.
“The country is growing, so the demand for gas as a primary fuel is increasing,” said Mr Samsudin. “The offshore fields, however, are depleting.
“We’re going to bring in LNG in liquid form, we are going to gasify it in our terminal in this form, and by having that available, the people can come up with so many things – be it a power plant, factories or industries.
“So, we’re actually integrating the growth by means of green, clean fossil fuels. There are so many fuels but the cleanest fossil fuel is still gas. We want the country to grow but in the cleanest and greenest manner.”
PGB is primarily involved in gas processing and gas transmission, having performed this task since its incorporation in 1983 before expanding its business operations in 1998 to include manufacturing, supplying and marketing of industrial utility products.
The company has six Gas Processing Plants in Kertih and Paka, in Terengganu. Natural gas from offshore fields are processed in these plants before being piped into PGB’s Peninsular Gas Utilisation pipeline network. From there, the usable gas is delivered to customers in the power, industrial and commercial sectors throughout Malaysia.

Import terminals

Key to the future of gas consumption in Malaysia is the building of two LNG terminals for import and regasification which will alleviate the nation’s energy supply challenges. The first one, with a capacity of 3.8 million tonnes per annum, is expected to open in mid-2012 in Malacca with another similar capacity terminal scheduled to be launched in 2016 in Pengerang, Johor, the latter to serve Petronas’s Refinery and Petrochemical Integrated Development (RAPID) project.
Some analysts expect the two terminals, and another to be built offshore, to boost PGB’s revenues by about 35 per cent by 2016, while others estimate gas demand to exceed 7mtpa by 2020.
Qatargas is expected to supply Petronas with 1.5mtpa over a 20-year period beginning in 2013. GDF Suez has also signed up to supply 2.5 million tonnes from August 2012 over a 42-month period.
Although PGB exports gas from its Terengganu operations to Singapore and other countries, growing local demand means the company is forced to import. This represents a significant evolution of the LNG scene in Malaysia because, though Petronas enjoys a virtual monopoly in the country, the need to bring in gas from overseas opens up the market for an array of suppliers to reach Malaysian customers.
“Once the gas market is ready, we are going to open up our PGU pipeline, what we call open access, so that parties can come in and use the pipeline,” said Mr Samsudin. “They will pay a tolling fee. You can have your own customers.
“We want to reach a point where we have an import facility and anyone who wants to bring in gas can do so and they just pay the rate. We are competitive and we will make sure our rates, if not the same, will be less than in the region.”
Mr Samsudin says this model would encourage gas vendors to use Malaysian pipelines to reach target customers, unearthing a wealth of investment opportunities for foreign companies looking to break into the regional market.

World Gas Conference

Mr Samsudin says PGB’s target is to have the Malacca facility operational during the World Gas Conference 2012 in Kuala Lumpur, Malaysia – the first time the triennial event is being held in the country.
The Conference is being held from June 4-8 2012 with the theme “Gas: Sustaining Future Global Growth” with more than 3,500 delegates from around the world expected to attend.
PGB is hoping Malaysian Prime Minister Dato Seri Najib Tun Razak will be able to officiate on the day the facility opens in tandem with the Malacca terminal’s opening.
“The whole world gas community will be here in town. We have no choice; we have to finish it by that time. It will bring a new era in terms of gas.”
Mr Samsudin says the Conference allows industry players from around the world to experience Malaysia’s import and regasification capabilities and boost investment opportunities in the country.
PGB ‘s revenues for the first quarter of 2011 was more than RM891 million, compared to RM802 million in the first quarter of 2010. Profit for the quarter was close to RM350 million, compared to RM277 million from 2010.

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