Govt Diversifies Gas Supply Sources To Strengthen National Energy Security
KUALA LUMPUR, Aug 3 (Bernama) -- The government is prioritising Malaysia's energy security by diversifying access to large-scale gas resources that could broaden supply options and enhance the country's energy resilience.
The Economy Ministry said that amid uncertainty in global energy markets caused by geopolitical tensions, Malaysia remained focused on diversifying its energy supply sources to reduce reliance on any single country or market.
It said any imports of crude oil from any country, including Russia, must be carried out in accordance with international trade policies and legitimate commercial channels.
"This is subject to considerations including pricing, product specifications, logistics, payment methods, transportation, insurance, as well as prevailing laws and regulations," the ministry stated on the Parliament's website today.
The ministry was responding to Senator Mohd Hasbie Muda on whether the proposed 20-year crude oil, gas and diesel supply agreement with Russia, as well as Malaysia's participation in gas field development in Turkmenistan, would deliver long-term benefits to the rakyat.
Regarding opportunities to develop gas fields in Turkmenistan, the ministry said such ventures would be assessed based on their commercial merits and potential contribution to diversifying Malaysia's long-term gas supply.
On June 20, Petroliam Nasional Bhd (Petronas) signed several agreements with two Turkmenistan companies, including a Production Sharing Agreement (PSA) covering Offshore Blocks 19 and 20, as well as a Cooperation Agreement (CA) for a 2D seismic survey covering the northern offshore blocks.
Petronas said the agreements reflected a shared commitment to unlocking new opportunities, enhancing subsurface understanding and strengthening Turkmenistan's position as a key contributor to regional and global energy supplies.
The ministry stated that the advantages of diversifying the country's energy sources can be realised through three key areas. These include enhancing national energy security by ensuring long-term access to energy supplies and providing greater flexibility in managing fuel prices and subsidies as the range of supply options increases.
It said the strategy would also create opportunities for Malaysian oil and gas services companies to participate in international value chains, strengthen the country's technical expertise and generate high-value jobs.
However, the ministry noted that the approach did not mean Malaysia would be fully insulated from fluctuations in global energy prices.
"Nevertheless, access to more diverse and competitive energy supply sources has the potential to support supply stability and reduce exposure to volatility in global energy markets.
"This will place Malaysia in a stronger position to safeguard the interests of the rakyat, industry and the national economy over the long term," it added.
-- BERNAMA