KUALA LUMPUR (Feb 27): Petroliam Nasional Bhd (PETRONAS) is preparing for full Peninsular Malaysia gas market liberalisation in 2028, its top officials said, which could see market pricing for gas sold in the domestic market across commercial, industrial and power sectors.
While segments of the gas industry have been opened up for the entry of new players, a full liberalisation — which includes open market pricing for gas — would be needed to spur gas imports and ensure supply security, according to PETRONAS executive vice president and chief executive officer of gas and maritime business Datuk Adif Zulkifli.
“Given that our offshore supply is quite limited to a certain extent, there will be a need to import more liquefied natural gas (LNG),” Adif said during PETRONAS' results briefing here.
“[Gas infrastructure] third-party access has been approved for quite a number of years. Now, what is needed to spur this importation of energy will be the full market liberalisation, which you can expect by 2028 as per the latest projection that we hear from the government. We are all lining up for that,” he said.
PETRONAS sold about 2,171 million standard cubic feet per day of natural gas in the domestic market last year. As demand rises, PETRONAS has been importing more and more gas from overseas at market prices. The bulk of domestic supply goes to the power sector, which enjoys a price cap on a certain portion of gas supply up until 2027.
To import gas in ships, the commodity is turned to liquid form in sub-zero temperature before being converted back into gas at the regasification terminals (RGT) of the importing country.
Anticipating even more imports, PETRONAS has been given the green light to develop its third RGT in Peninsular Malaysia in Perak.
For now, it appears that the price adjustment will have limited impact as gas prices to the power sector were below the price cap as at the second and third quarters of 2025, according to official data.
“We are in sync and supportive of the government's efforts to ensure that there is a transformation and a liberalisation of the market,” said PETRONAS president and group CEO Tan Sri Tengku Muhammad Taufik.
“We have a primary duty to ensure energy security is there, and we have to ensure that once we bring in the volumes necessary in the form of LNG and they get gasified, there is a recognition we have to move to market prices,” he added.