Access To Financing Among Challenges For Gas Industry In Transitioning To Cleaner, Sustainable Energy
KUALA LUMPUR, Feb 13 (Bernama) -- The gas industry needs to address the right challenges especially in securing access to financing, while transitioning towards cleaner and more sustainable energy.
Malaysian Gas Association president Abdul Aziz Othman stressed that the high costs associated with the energy transition -- particularly for technologies such as carbon capture, utilisation and storage (CCUS) and infrastructure modernisation, requires innovative financing solutions.
"Through collective actions from policymakers and industry experts, we hope to future-proof the gas industry by taking necessary measures to ensure its sustainability and resilience in achieving a responsible energy transition," he said in his welcoming remarks at the fourth edition of the Malaysian Gas Symposium (MyGAS 2025).
He said MyGAS 2025 themed 'Fuelling a Sustainable Gas Industry's Transition' underscores the critical role of gas in ensuring energy security while supporting Malaysia’s decarbonisation efforts and accelerating the energy transition towards net-zero emissions by 2050.
He said as developing economies such as Malaysia and its regional counterparts rely heavily on natural gas, which has been well recognised for socio-economic growth, securing financing for gas-related projects across the value chain is crucial.
"Malaysia’s National Energy Transition Roadmap (NETR) highlighted that the demand for natural gas would increase from 43 per cent (41 million tonnes of oil equivalent or mtoe) to 56 per cent (57 mtoe) by 2050.
"In doing so, we are talking about real projects that need real funding," said Abdul Aziz.
At the same time, he noted that Malaysia’s electricity demand is projected to more than double by 2040, driven by economic growth, industrial expansion, and energy-intensive sectors like data centres, which alone would require around 20.9 gigawatts of electricity.
He also highlighted that the Peninsular Generation Development Plan 2024-2050 outlined a roadmap to meet this demand by developing new generation capacity, balancing gas-fired power and low-carbon energy sources.
Besides that, the coal share in electricity generation is expected to decline from 46 per cent today to 36 per cent by 2033, shrinking at an annual rate of 1.7 per cent between 2029 and 2033.
"This reduction will be offset by the growth of gas-fired power, which will expand at an average annual rate of 3.8 per cent over the next decade, becoming Malaysia’s largest power source by 2031 and contributing 41 per cent to the energy mix by 2033," he said.
Abdul Aziz also said that that while the industry aims for ambitious goals, it is crucial to approach the transition with a realistic mindset, adding that the ecosystem as a whole must be equipped and geared up to move towards the right pathways.
Held biennially since its inception in 2019, the symposium brought together policymakers, industry leaders and stakeholders to discuss the future of natural gas and its role in the global energy transition.
-- BERNAMA