Multiple agencies hamper efforts to improve O&G sector

The report, which was released yesterday, focused on the new government

PETALING JAYA: Market reforms in the oil and gas (O&G) industry was hampered by multiple agencies handling different sectors of the energy industry which is one of the pillars of the country’s economic growth.

The presence of multiple agencies handling different sectors such as O&G has led to fragmented governance and coordination issues, according to the mid-term review of the 11th Malaysia Plan (11MP).

The report, which was released yesterday, focused on the new government’s efforts to increase security and reliability of the O&G supply.

The oil and gas (O&G) sector is expected to see construction of new additional pipelines and other infrastructure, according to the report.

It said these construction efforts included Petronas Floating Liquefied Natural Gas 2 with a capacity of 1.5 million tonnes offshore Sabah, which is expected to be commissioned in 2020, and the pipeline networks from Ayer Tawar to Lembah Kinta, Perak.

“Meanwhile, the commencement of the Refinery and Petrochemical Integrated Development (RAPID) operations will increase the combined domestic oil refining capacity beyond 900,000 barrels per day by 2019,” it said.

Along with that, storage capacity of crude oil and petroleum products in Pengerang Integrated Petroleum Complex (PIC) will be expanded from 1.3 million cubic meters to 3.2 million by 2020.

“These efforts will enable Malaysia to increase production of higher value-added petroleum products to leverage domestic and exports market.

“Furthermore, the application of enhanced oil recovery technology in mature oil fields to obtain stranded oil will further increase crude oil production from these fields,” it said.