By Els Ee
Natural gas is abundant in Malaysia with deposits having been discovered in all three regions comprising Peninsular Malaysia, Sabah and Sarawak. The country’s total natural gas reserves is 87.8 Tscf. At current production rates, the reserves should last for at least another 36 years. About 40 percent of Malaysia’s energy needs today is being met by natural gas. Natural Gas become the most important and valuable resources to country in many sectors.
What is natural gas? Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane. It is colourless, odourless and flammable in its naturally occurring state. Its combustion does not produce ash residues, sulphur oxides, negligible nitrogen and the lowest CO2 emissions that are harmful to the environment. It is by far the 'cleanest' fossil fuels and is rapidly gaining ground over other fuels as an energy source for homes and industrial activities. What is natural gas in industrial sector? In the industrial sector, Natural Gas is very important nowadays and it is often used as a raw material for products such as hydrogen, fertilisers and plastics. In addition, It is also commonly used as an energy source for food processing, glass making steel fabrication and widely used to produce electricity via cogeneration and as a fuel for transport of people and goods. Other industries that utilize natural gas for their production process is like Ceramic industry and Rubber industry. Each of the industries have their own way and process in using natural gas for their production. Where natural gas delivered to & Who is in charge for the natural gas? Natural gas will be deliver to industrial location (factory) based on the location consumers informed. Then, the person in charge for the gas supply or we know them as registered gas contractors will handle the installation of natural gas from the beginning until complete. Gas contractors need to be registered with the Energy Commission in compliance with Regulation 103 (Gas Supply Regulation 1997) in order to perform or carry out installing, constructing, testing, commissioning, calibrating, maintaining, repairing or operating a gas pipeline or gas installation. 
Sources: Shell Malaysia
How is natural gas transported? First method to deliver the natural gas is transported by using virtual pipeline network in order to send it to where it is needed. By using pipes, gas can be cost effectively transported over long distances as part of an integrated gas transport network. The development of such a “virtual” pipeline network can only be economically, safely and expediently achieved by the employment of the most advanced and reliable technologies. Industrial sector (factory) which did not have pipelines network in their area, they need to hire registered gas contractors from any supplier company to build natural gas pipeline in that area in order to get natural gas supply. Second method that have been used for the first liquefied natural gas (LNG) is solution provider to use road trucks for off-grid customers in Peninsular Malaysia that introduced by Petronas Dagangan Bhd. Now they have the capability to deliver LNG using trucks fitted with cryogenic tanks, providing industries within Peninsular Malaysia that are not connected to the natural gas infrastructure with access to cleaner energy.
Virtual Pipeline System (VPS)Source: Gas Malaysia
Gas prices & tariff rates for natural gas?- Prices
- Bills
- Billing Period & Terms of Payment
- Bill Estimations
Source: Gas Malaysia
What is Gas contracts? Gas sales agreements The pipeline gas sales agreement (GSA) is also known as a gas purchase agreement (GPA) or a gas sales and purchase agreement (GSPA). These agreements between a producing company or sales agent (seller) and a consuming company (buyer) usually cover a number of provisions.- Term
- Quantity
- Price terms.
- Delivery obligation.
- Delivery point.
- Gas quality.
Source: Gas Malaysia
Advantages natural gas in industrial sector?- Our customers enjoy savings in energy costs, as Natural Gas is a premium fuel that is priced competitively.
- Natural Gas offers higher fuel efficiency compared to other petroleum products and is easily controlled at the point of use.
- Gas Malaysia supplies Natural Gas to businesses throughout Peninsular Malaysia via pipelines. Hence, there is no need for storage tanks. Our pipelines ensure stable supply of gas for you.
- With no emission of soot or ash during combustion, contamination of end products are minimised, which indirectly relates to a higher return on investment for your business.
- Natural Gas is lighter than air and easily disperses in the event of a gas leak. Hence, the probability of sparking off is remote, compared to heavier gases. For added security, a pungent odoriser known as mercaptan is added to forewarn users of any leakage.
- Natural Gas is a clean, it emits minimal amounts of sulphur dioxide, nitrogen oxide and carbon dioxide. Moreover, ash or soot is not released upon combustion, thus preventing air contamination.
- It is versatile. A gas-fired power station takes much less time to start and stop than a coal-fired plant. This flexibility makes natural gas a good partner to renewable energy sources like solar and wind power, which are only available when the sun shines and the wind blows.
