KUALA LUMPUR (Oct 3): Malaysian Gas Association has lauded the agreement between Tenaga Nasional Bhd (TNB) and Shell Malaysia Trading Sdn Bhd (SMTSB) for a trial third party cargo (TPA) delivery of liquefied natural gas (LNG) as a major milestone in gas market reforms aimed at liberalising prices.
"It proves that with the right pricing signal from the domestic market, third parties can enter to offer competitive sourcing options and validates the policy of staying the course on gas market liberalisation," it said in a statement today.
The association said the planned delivery of the first TPA LNG cargo next week is an important step in gas market reforms that began in 2013 with the first regasification commencing operations in Sungai Udang, Melaka, enabling LNG importation.
"The Gas Supply (Amendment) Act 2016, already in operation since Jan 2017, allows third parties to sell gas, thus offer options to gas users, which works in the best interests of the consumers.
"It provides them with an array of choices in sourcing for the right supply option by making it possible for gas suppliers to mix and match service offerings so that they meet the exact requirements of the consumers," it said.
However, the association said more is needed to be done to increase gas consumption in Malaysia so that more third party cargos can come in.
"These include attracting new investors that consume gas, increasing the uptake of existing consumers, enhancing accessibility to the clean fuel and promoting a higher percentage of gas in the power generation mix," it said.