KUALA LUMPUR: Peninsular Malaysia is expected to require more natural gas as demand rises amid the country’s energy transition and its commitment not to deploy new coal-fired power plants, Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir said.
He said gas would remain a key transition fuel for Malaysia, with the expected increase in demand requiring additional infrastructure to bring more gas into the Peninsular pipeline system.
“In terms of our realistic projections, we know that, on the one hand, from the demand perspective, we can foresee the higher need of gas,” he said at the Oil and Gas Asia (OGA) 2026 conference today.
“The reason being, it’s quite clearly, gas has been adopted as a fuel transition and Malaysia remains committed not to deploy any new coal power plants.
“So definitely, in terms of gas, it’s going to be our energy base load for the future.”
Akmal said the government therefore expects gas demand to increase, pointing to the development of the third regasification terminal (RGT3) in Lumut as part of its gas infrastructure planning.
“So we project the demand for the gas will be increasing. So that’s why for the gas infrastructure planning, we are developing our RGT3, Regasification Terminal in Lumut, to allow more gas to come into our pipeline for the future needs,” he said.
He said the expected increase in gas demand would also create opportunities for industry players to participate in bringing gas into the country.
“So in terms of the potentials for the gas, definitely this is where the players will have the opportunity to participate and to bring gas to the country,” he said.
During a fireside chat earlier at the same event, Akmal had said Peninsular Malaysia would need more gas and that additional infrastructure and skills would be required.
Clarifying the remarks, he said the expected increase in gas demand was linked to the country’s energy transition and the continued use of gas as a transition fuel.
RGT3 is being developed in Lumut to provide additional regasification capacity for Peninsular Malaysia. Petronas Gas Bhd has said the facility is designed for 170,000 cubic metres of LNG storage and 500 million standard cubic feet per day (MMscfd) of regasification capacity, with commercial operations targeted for the second quarter of 2029.
Akmal’s comments indicate that Malaysia expects gas to play a significant role in meeting Peninsular Malaysia’s energy needs as the country moves away from new coal-fired generation.
