KUALA LUMPUR (June 13): The Malaysian Gas Association (MGA) has voiced its support for the increase in natural gas tariff for Peninsular Malaysia's non-power sector.

"(We) applaud the government's market liberalisation efforts including deregulation of gas price to achieve a market-based pricing," the association said in a statement today.

"MGA is committed to facilitating the growth of the industry and views this announcement as a progressive step by the government to further develop a vibrant gas market," its secretary general Rosman Hamzah said.

"Aligning the domestic gas price with the international market creates a competitive and dynamic environment, which promotes efficient resource allocation and utilisation, ensuring Malaysia's energy security," he said, adding that a level playing field should pave the way for stronger socio-economic progress in the long run.

Gas Malaysia Bhd had today announced that the Energy Commission had approved a RM1.02 increase in the natural gas base tariff for Peninsular Malaysia to RM31.92 per million British Thermal Unit (MMBtu) for the period beginning July 1, 2018 until Dec 31, 2018.

With the addition of a 77 sen per MMBtu gas cost pass through surcharge, the effective tariff raises the price of natural gas to RM32.69 per MMBtu.

The MGA, founded in 1986, said it is the nation's lead advocate for the natural gas industry and has over 150 corporate members.