KUALA LUMPUR: The Government is focusing on getting the necessary framework in place for third party access (TPA) to pave the way for the liberalisation of the gas market in Peninsular Malaysia.
It will also push for rationalisation and subsequent deregulation of gas price in a move towards a market-based pricing of energy, the Performance Management and Delivery Unit (Pemandu) said in the National Transformation Programme Annual Report 2015 released on Tuesday.
“The advent of market liberalisation will facilitate the entry of new industry players, encourage more efficient utilisation, and benefit customers by enabling competitive gas pricing,” the report said.
It said the TPA would simultaneously contribute towards stronger foundations of the country’s energy security, fostering greater economic security, prosperity and well-being.
On the oil and gas industry, it said local industry players were better positioned to face the economic uncertainty, having built competency and capacity over the years compared with that of 1998 when oil prices dropped below US$10 per barrel.
On the upside, it said the current situation created a stronger impetus for oil and gas players to take measures that would inevitably strengthen their operations and help create resilience against volatilities and unexpected industry developments.
“The current low oil price scenario creates an opportunity for industry rebalancing and evolution to ensure best possible returns on capital invested as opposed to merely surviving the downturn,” it said.
The report said with oil majors adjusting to the “new normal” of low oil price cycle and a shrinking pie in terms of work within the industry, competition had naturally intensified.
Hence, the local oil and gas services and equipment (OGSE) companies must consider exploring consolidation opportunities within the fraternity to increase their competitiveness and place the industry in good stead when the global oil market recovers, it added.
It said local OGSE companies must increase their competitive advantage by investing and working to become owners of technologies, rather than agents of technologies.
In the quest to promote information transparency and spur the oil and gas industry growth, the report said the Malaysian Petroleum Resources Corp (MPRC) introduced the MPRC100, a list of 100 top OGSE companies in Malaysia based on revenue.
Besides the MPRC100, the MPRC has published two other documents: the Malaysia OGSE Catalogue, featuring 154 companies in its 2016 edition, and the Malaysia Oil and Gas Research and Development Catalogue.
“Essentially, through these reports, the agency aims to generate more interest, analysis and discussions to build capacity and further uplift the OGSE sector in line with Malaysia’s goal of becoming the OGSE hub of Asia-Pacific,” it added. - Bernama
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