Malaysia favoured site for Asean Gas Centre

Malaysia is expected to become the home of the proposed Asean Gas Centre (AGC) that will play a key role in the development of the gas business in the region, Malaysia's NSTP e-Media reported saturday.

Malaysian Gas Association president Muri Muhammad said Malaysia is the favourite because of its excellent gas infrastructure.

Muri said with the establishment of AGC, all gas-related activities in the region would be centred in Malaysia.

?The decision will be made by next year,? he said in an interview.

Malaysia mooted the AGC to better coordinate the regional gas industry.

The other contender to house the AGC is Indonesia, with the world?s 17th biggest gas reserves. Malaysia was ranked 12th in 2001. Malaysia?s proven natural gas reserves is at 84 trillion standard cubic feet.

The centre would be a platform for regional players to meet and discuss issues related to the gas industry, Muri said.

Malaysia, through Petroliam Nasional Bhd (Petronas), has experience in oil- and gas-related projects such as the Trans-Asean Gas Pipeline (TAGP). The TAGP project has been led by Malaysia from the beginning.

?We believe that Malaysia is in a comfortable spot to host the centre,? he added.

He said Malaysia has completed the gas pipeline from West Natuna in Indonesia to Terengganu and gas will flow in the pipeline in October. The gas will then be delivered via Petronas? gas pipeline systems to feed the demand from Malaysian Peninsula users.

?The liquefied natural gas (LNG) requirement for power sector in Sabah and Sarawak are currently being supplied from Bintulu, Miri and some in Kota Kinabalu plants,? he said.

A third LNG plant is currently under construction and once completed, it will be the single largest facility in the world.

He also said the power generation industry is the main consumer of natural gas in Peninsular Malaysia.

The use of gas is also being aggressively promoted in the industrial, commercial, residential and transportation sectors by making gas available to the end-users via the natural gas distribution network.

The network will comprise more than 200km of steel feeder lines and 7,000km of polyethylene pipeline to facilitate the delivery of this environmentally-friendly fuel to consumers. Petronas also imports natural gas from Sumatera to meet the higher requirement in Peninsular Malaysia.

?This is another project that is going to come out anytime soon,? he said, declining to elaborate.

Petronas, according to Muri, is also involved in the construction of gas pipeline network connecting Myanmar and Thailand and it will channel natural gas from Myanmar?s reserve areas.(*)