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20
19
Q3 MGA QUARTERLY
U P DAT E
1
FROM THE PRESIDENT’S DESK
Hazli Sham KassimPresident of MGA
Upcoming Events
OpenMalaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
22 November 2019The St. Regis Kuala Lumpur
Dear MGA Members,
It was another impactful quarter for MGA where we continued to advocateand constantly engage policymakers to position gas as the main source ofenergy to drive the nation’s socio-economic growth.
We are proud to share that MGA remains recognized as the voice of the gasindustry when we are invited by Ministries, Government Agencies andRegulators to participate in committees, workshops and focus groups.
More recently, Ministry of Economic Affairs (MEA) invited MGA to participatein the Technical Working Groups (TWG) for both Upstream and ElectricitySupply and contribute towards establishing the content for the 12th MalaysiaPlan (12MP). One of the outcome from TWG is to develop a natural gasroadmap that will be incorporated into the 12MP.
Natural Gas Roadmap
Recognising the urgent need for action to ensure future sustainability of the natural gas industry, MGAstarted the year with a call for a Natural Gas Roadmap (refer MGA’s Q1 2019 Quarterly Update). We aredelighted that in September 2019, MEA has established a Technical Committee to develop the roadmapand are proud to share that MGA has been identified as its Secretariat. The roadmap is expected to beready by mid-2020, in time for incorporation into the 12MP. We urge all our members to supportdevelopment of this roadmap.
Calling for Increase in Gas Demand
As we get nearer to the end of 2019, MGA will continue itsadvocacy on gas through engagement and communication.We will continue to ensure that market reforms remain ontrack to ensure sustainability of the industry. The landing ofthe third party LNG cargo at Sg Udang on 7th October 2019 isproof that the right market pricing will offer more options toconsumers. It is now becoming more important to increasegas demand to ensure a vibrant gas market and sustainupstream investment. MGA will continue to advocategreater demand for gas and will enhance awareness ofnatural gas as clean, flexible, accessible and reliable fuel. Forour businesses to be sustainable, our gas industry mustremain vibrant.
Ending an Exciting 2019 with a Bang
We look forward to end the year with a bang, celebratingsuccesses in 2019 at our Industry Gala Dinner on 22nd
November 2019. Don’t miss this fun networking opportunityand book your table now before we sold out.
See you there!
C O U N C I L
MGA’s Eminent Persons Sharing Wisdom with Minister of MESTECC
2Open
On 17TH October 2019, MGA Council and Honorary Members met YB Puan Yeo Bee Yin, Minister of
Energy, Science, Technology, Environment & Climate Change (MESTECC) and her #TeamEnergy.
At the meeting, MGA’s eminent Honorary Members, namely Tan Sri Dr Ngau Boon Keat and Datuk
Vivekananthan M.V. Nathan, stressed the importance of natural gas to the nation and its role in driving
the national economy over the years, ever since gas was featured as the main fuel in the Four-Fuel
Diversification Policy (1981). They also urged for the gas market reforms, including gas price
rationalization, to stay on course in order to attract third party gas suppliers to enter the market and to
encourage greater upstream investments, thus ensuring the sustainability of the natural gas industry and
its entire value chain where MGA members are actively involved.
YB Minister was accompanied by MESTECC’s Deputy Secretary General Noor Afifah Abdul Razak and
Energy Commission’s CEO Abdul Razib Dawood.
The delegation from MGA, led by MGA President, Hazli Sham Kassim, comprising Honorary Members
Tan Sri Dr Ngau Boon Keat and Datuk Vivekananthan M.V. Nathan, Council Members Mustaffa Kamal,
Kamal Bahrin Ahmad, Nan Yusri Nan Rahimy, Datuk Zunaidah Idris and Leader of Regulatory &
Government Affairs Working Committee Abdul Razak Saim.
Malaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
E V E N T S &A C T I V I T I E S
MGA Playing a Key Role in Shaping National Policies
3
ADVOCACY
Open
1 2 t h M A L A Y S I A P L A N ( 2 0 2 1 - 2 0 2 5 )
In August 2019, MGA participated in workshops organised by Ministry of Economic Affairs (MEA) for boththe Technical Working Groups (TWG) for Energy, namely Upstream and Electricity Supply. The TWGs aretasked to provide inputs to prepare the strategy paper on sustainable usage of energy to support growththat will be incorporated into the 12th Malaysia Plan (12MP) for the period 2021-2025.
From the workshop, the following have promising potential to be incorporated into the 12MP.
TWG on Upstream• Development of a natural gas roadmap to
grow the industry and ensure its sustainability
• Opportunity to promote gas as integral fuel in future energy mix
TWG on Electricity Supply• Opportunity to promote cogeneration as
means to achieve energy efficiency• Acceptance of biogas injected into natural
gas pipelines as renewable
MGA is pleased to share that it has been identified as the Secretariat to the Technical Committee todevelop the Natural Gas Roadmap for incorporation into the 12MP. The Committee will be led by MEA.
E N E R G Y E F F I C I E N C Y A N D C O N S E R V A T I O N A C T ( E E C A )MGA continues to attend the EECA drafting committee meetings in Q3 2019 and constantly contributingproactively in the discussions.
MGA also participated in the stakeholder engagement workshop (photo below) held 12th September2019.
Malaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
E V E N T S &A C T I V I T I E S
MGA Participated in Discussions on National Policies
4
ADVOCACY
Open
R E F O R M I N G T H E M A L A Y S I A E L E C T R I C I T Y S U P P L Y I N D U S T R Y ( M E S I 2 . 0 )
MGA participated in “Reimagining Malaysia Electricity Supply Industry (MESI) Stakeholders Forum”organised by MyPower Corporation on 20th August 2019.
During the breakaway group discussion, MGA promoted natural gas as in integral part of the futureenergy mix in MESI. The group comprise representatives from Ministry of Energy, Science, Technology,Environment & Climate Change (MESTECC), Energy Commission, Single Buyer, Tenaga Nasional Berhad,PenjanaBebas and key industry players.
MESTECC has reactivated MyPower for three years as part of the Malaysia Energy Supply Industry (MESI)2.0 initiatives. The main agendas of the reforms are to increase industry efficiency, future-proof theindustry structure, regulations and key processes, as well empower consumers, democratise anddecentralise the electricity supply industry.
When the initiatives under MESI 2.0 is implemented, any party shall be able to sell power directly to anyconsumer that is connected to the electricity grid. With the third party access for natural gas expected tooffer competitive supply by that time, power generated gas-fired power plant, including cogeneration,has the potential to feature prominently in the energy mix.
E N C O U R A G I N G C O G E N E R A T I O N W I T H T A X I N C E N T I V E S
On 13th August 2019, MGA met MalaysianInvestment Development Authority(MIDA) to discuss tax incentives for themain equipment being used incogeneration projects in Malaysia.
Malaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
Experts
E V E N T S &A C T I V I T I E S
Workshop on ‘’Awareness & Benefits of Cogeneration’’
5
On 20th August 2019, MGA’s Taskforce on Promoting Cogeneration organised the Workshop on‘’Awareness & Benefits of Cogeneration’’, held at Concorde Hotel Kuala Lumpur. The workshop wasattended by more than 70 companies and organizations, including from building and commercial sectors.Main purpose of the workshop was to introduce cogeneration technology, its benefits and applicabilityto new market segments.
To allow participants to dwellfurther into their specific areas ofinterest, a “Meet the Experts”session was conducted after lunch,where participants were presentedwith the opportunity to consultexperts from amongst MGAmembers and deep dive into therespective topics.
MeetThe
Industry
from MGA
ADVOCACY
Open
Benefits & Application of Cogeneration
Ways to Make Cogeneration Work
CogenerationCase Studies
Introduction to the Gas Industry
Welcome Remarks
Dr. Lim Daw YuenSime Darby
Energy Solutions
Mohd Shariff LubisGas Malaysia
Energy Advance
Takahashi MasahideKawasaki Gas Turbines Asia
Rosman HamzahMGA
Hazli Sham KassimPresident of MGA
SP
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& T
OP
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Cogeneration Technology
Developing Cogeneration Project
How to Get Gas Supply
How Third Party Access (TPA) Works
Full House: Encouraging interest in Cogeneration
The Team that delivered the Workshop
Malaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
E V E N T S &A C T I V I T I E S
ADVOCACYE V E N T S &A C T I V I T I E S
6
Cogeneration or combined heat and power (CHP) is an efficient and cleaner way of generating electric power andthermal energy from a single fuel source. The engine drives the generator, producing electricity, and the residual heatcreated during this process is recaptured and turned into useful heat (heating, cooling or steam).
ADVOCACY
What is Cogeneration?
In the News - MGA’s Efforts on Promoting Cogeneration
Cogeneration Increases Efficiency of Energy Conversion
Benefits of Cogeneration
OpenMalaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
E V E N T S &A C T I V I T I E S
COMMUNICATIONSE V E N T S &A C T I V I T I E S
3
ADVOCACY
MGA President Spoke At PowerGen Asia 2019
MGA’s Brand Visible At PowerGen Asia
On 3rd September 2019, MGA President, Hazli Sham Kassim, delivered a keynote address on “Natural
Gas as the Perfect Partner for Renewables - Investing in a Cleaner, Better Energy Future” at PowerGen
Asia 2019 in Kuala Lumpur, Malaysia.
Held at the Malaysia International Trade and Exhibition Centre (MITEC), PowerGen Asia is the largest
annual conference and exhibition for power generation in the South East Asia region.
“Due to its reliable and flexible characteristics, natural gas has been Internationally recognised as the
perfect partner to renewable energy (RE). In Malaysia, natural gas can play a similar and vital role in
driving the growth of RE. Ministry of Energy, Science, Technology, Environment and Climate Change
(MESTECC), through its 2019 Initiatives, strives to achieve 20 per cent renewable energy capacity mix by
2025. With most of the RE capacity expected to comprise variable renewable energy, in particular solar
photo-voltaic, flexible base-load power generation plays an important role to ensure stable and
sustainable supply of electricity to consumers,” said Hazli in his address.
Hazli Sham concluded his presentation by calling for a policy
to include cost of externalities when considering the true
cost of electricity generation. Hazli Sham explained, “Air
pollution has high economic and societal costs, which need
to be priced explicitly or through regulation. According to a
case study performed in the Philippines, by including cost of
carbon and associated cost on health impact, the cost of
electricity generated from natural gas is at least 20% lower
when compared to coal”
Hazli was also speaking in his capacity as the Regional
Coordinator for the International Gas Union (IGU).
Open
MGA is proud that our brand was prominently visible
at the PowerGen Asia Conference & Exhibition, held
from 3rd to 5th September 2019 at MITEC, Kuala
Lumpur, that attracted more than 11,000 attendees.
In addition to MGA’s brand being visible during its
President’s keynote address, MGA is truly grateful
that its member, Kawasaki Gas Turbine Asia (KGA),
has graciously agreed to display MGA’s bunting at its
booth during the entire exhibition.
Picture shows the MGA bunting at PowerGen Asia, flanked by MGA President, Hazli Sham (right) and
Takahashi Shigeru, Sales Director of KGA (left).
Malaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
E V E N T S &A C T I V I T I E S
LEARNINGE V E N T S &A C T I V I T I E S
5
COMMUNICATIONS
MGA Welcomes Positive Development On TPA For Natural Gas
IN THE NEWS
MGA Welcomes The Industry’s First Third Party LNG Cargo As A Catalyst Towards A Sustainable Gas Industry
OpenMalaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
E V E N T S &A C T I V I T I E S
COMMUNICATIONSE V E N T S &A C T I V I T I E S
3
MGA Promotes Gas as Partner to RE At PowerGen Asia
Open
COMMUNICATIONS
The Edge, 7th October 2019
IN THE NEWS
Malaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
E V E N T S &A C T I V I T I E S
COMMUNICATIONSE V E N T S &A C T I V I T I E S
LEARNING
Industry Talk featuring Bank Negara & PETRONAS
Q&A Sessions
On 14th October 2019, MGA’s Learning & Development Working Committee organised an Industry talkthemed “Outlook on the Malaysian Economy & Its Oil and Gas Industry” exclusive for its members. Held atImpiana KLCC, the response to the talk from MGA members was overwhelming with more than 150members in attendance. Also in attendance were policymakers and regulators.
The Talk featured Dr. Zarina Zainal Abidin, Deputy Director of Economics Department, Bank NegaraMalaysia and Samsudin Miskon, Vice President Procurement, PETRONAS who spoke on “The MalaysianEconomy : Prospects, Challenges, and Policy Priorities” and “Outlook on the Malaysia Oil and GasIndustry” respectively.
The talk began with Welcoming Remarks by Hazli Sham Kassim, President of MGA, followed bypresentations by the two esteemed speakers. Dr. Zarina presented an insight on Malaysian economy andwhat MGA members should expect in 2020, followed by Samsudin who shared industry insights,upcoming challenges such as digitalization & trade liberalization, and PETRONAS future direction inprocurement, in line with its “Passionate about Progress”.
After “hearing it from the horses’ mouths”, MGA members were presented with the rare opportunity todirectly engage the speakers in a Q&A session moderated by Rosman Hamzah, Secretary General of MGA.
Open
Hazli Shah KassimPresident of MGA
Samsudin Miskon PETRONAS
Dr. Zarina Zainal AbidinBank Negara Malaysia
Malaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com10
FULL HOUSE
Q&A Chairman of Energy Commission
E V E N T S &A C T I V I T I E S
11
LEARNING
Energy Efficiency Program (EEP)
Open
“Inilah kali pertama kami melihat pelajar-pelajarlebih ‘confident’ dan sangat cekap di luar kelas.Program ini merupakan satu pengalaman yangcukup berharga, bukan sahaja bagi pelajar,tetapi juga bagi kami para guru. Akhir sekalikami mengucapkan terima kasih kepada MGAkerana menaja program EEP”.
Cikgu Fatihah (SMK Sulaiman)
T e s t i m o n i e s f r o m T e a c h e r s & S t u d e n t sM G A M e m b e r s a s m e n t o r s
S t u d e n t s p r e s e n t i n g t h e i r i d e a s f o r e v a l u a t i o n
Participating Schools1. SMK Putrajaya Presint 14(1), Putrajaya2. SMK Putrajaya Presint 16(1), Putrajaya 3. SMK TTDI Jaya, Selangor4. SMK Dato Ahmad Razali, Selangor5. SMK Bentong, Pahang6. SMK Sulaiman, Pahang Special briefing session on Micro:Bit
for accompanying teachers
63
216
states
schools
students
Malaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
MGA’s Energy Efficiency Program (EEP) was held from August to October2019 with series of exciting workshops to advocate gas and energyefficiency in a fun and innovative way amongst Form 2 students.Supported by the Ministry of Education, EEP 2019 leveraged on Micro:Bitas the learning tool to stimulate KBAT (higher order thinking skills).
Using Micro:Bit, students were encouraged to innovate smart and energyefficient solutions to address problems at schools. The best two ideasfrom each school then competed at a Showcase held on 2nd October 2019.
Through the two-day program (Day 1: Introduction & Micro:Bit Workshop& Day 2: Mentoring & Project Development session), MGA hopes to haveencouraged more students to pursue education in Science, Technology,Engineering and Mathematics (STEM).
E V E N T S &A C T I V I T I E S
LEARNING
EEP Showcase
E V E N T S &A C T I V I T I E S
5
LEARNING
B e h i n d e v e r y i d e a i s a n o p p o r t u n i t y t o i n n o v a t e This basically summarizes MGA’s Energy Efficiency Program (EPP) that closed its 2019 edition on 2nd
October 2019 with a Final Showcase at the Maker Studio, Petrosains, that featured 12finalists representing 6 schools from 3 states. SMK Dato’ Ahmad Razali, Ampang, Selangor emerged asthe Champion with a project called ‘I-chop’ while 2nd place went to SMK Putrajaya Presint 16(1) with aproject titled ‘Smart Computer Lab’. SMK Sulaiman, Pahang who innovated “Smart Hall Pass’ obtainedthe 3rd placing while the most popular group went to SMK Sulaiman who innovated ‘Future FantasticLibrary’. All of the projects were designed using Micro-bits and fulfilled the key theme of thecompetition, namely ‘Smart Solutions’ that are ‘Energy Efficient’, and able to address commonchallenges at school.
Open
Winning EEP Idea Going “Commercial”
The finalists with MGA President Hazli Sham Kassim, Advisor to Learning & Development Working Committee Ahmad Hashimi, Zalina Kamis from Ministry of Education, teachers, facilitators and MGA Secretariat.
Students explaining their ideas to visitors to Petrosains
Judges at the Showcase were Zalina Kamis (right), Principle Assistant Director, Ministry of Education and Murni Shariff, Head of Corporate Services, MGA
Malaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
From EEP Idea to working Prototype
The winning idea at the EEP showcase developed by SMK Dato’ Ahmad Razali has a proven potential tobe commercialised. I-chop or Intelligent chop is a machine designed to automate the stamping (chop) oftext books with school logo, thereby saving time and energy. Based on the idea developed by itsstudents during MGA’s EEP sessions, the school proceeded to build a full-scale prototype thatsuccessfully functioned as designed. The prototype emerged as state champion and received thenational special jury award at this year’s Schools Text Books Carnival.
The proud innovators and champions of MGA’s EEP 2019
E V E N T S &A C T I V I T I E S
LEARNINGE V E N T S &A C T I V I T I E S
5Malaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
PRESTIGE 2019
LEARNING
MGA’s annual Practical Environmental, Safety & Industrial Guidance for Student Engineers (PRESTIGE)programme returned to the east coast of Peninsula Malaysia. Held in Paka, Terengganu from 20th to22nd September 2019, PRESTIGE 2019 offered invaluable experience to 60 final year STEM studentsfrom 6 local universities and provided rare access to industry players and technical facilities.
The aim of PRESTIGE is to provide a platform to bridge the industry with academia towards enhancingawareness on the whole value chain of natural gas industry, the importance of HSSE, and careeropportunities, in the hope of increasing their employability rate and preparedness in joining theindustry upon graduation.
Open
6
60
unis
students
UMTUMP
UMK
TATIUC
UTM
UNIKL-MICET
Team building to foster teamwork between students from different universities
Providing first-hand industry insights through technical visit to the Gas Processing Plant in Kerteh
Moderated panel session discussing careers in oil & gas
Motivation talk by Idris Ibrahim, CEO INSTEP
Inculcating CSR mindset with mangrove planting
Poster talk on oil & gas technology, services and solutions by industry experts
“Speed dating” offering intimate interaction with industry players on careers
E V E N T S &A C T I V I T I E S
COMMUNICATIONSE V E N T S &A C T I V I T I E S
3
NETWORKING
Malaysian Gas Golf Challenge
On 5th October 2019, MGA’s Membership & Social Working Committee organised the MalaysianGas Golf Challenge, providing members a platform to engage in a friendly competition whilenetworking with fellow industry peers. Held at the Palm Garden Golf Club, Putrajaya, thetournament hosted 30 flights of golfers from 23 MGA member companies. To inject an element offun, the more forgiving format of 2-Man Scramble was adopted, making the game more enjoyable.
OpenMalaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
Networking….. …whilst having fun
Nan Yusri Nan RahimyAdvisor to the Organising Committee
The Organising Committeewith Adif Zulkifli, MGA President & Council members
Medal A winners: Khailani & Aminuddin Baki Othman with Adif Zulkifli, EVP & CEO, Gas & New Energy, PETRONAS
Medal B winners: Datuk Wira Ir Md Sidek Ahmad & Dato’ Abdul Rahim Noh with Hazli Sham Kassim, MGA President
N e w P u b l i c a t i o n s
E V E N T S &A C T I V I T I E S
15
International Gas Union (IGU)
E V E N T S &A C T I V I T I E S
AFFILIATIONS - INTERNATIONAL
OpenMalaysian Gas Association |MGA Quarterly Update | 2019 Q3| www.malaysiangas.com
The IGU Council meeting held on 10th October 2019 in Yogyakarta,Indonesia was perhaps to most important meeting in the history ofIGU. At that meeting, the Council approved the amendments to theArticle of Association that will enable the establishment of apermanent headquarter (HQ) and secretariat by 2021. Currently, theIGU Secretariat is hosted and staffed by IGU members. The meetingalso approved the selection of London as location for the permanentHQ.
MGA was a member of the high level Transition Team that wasestablished to develop proposals on the permanent HQ.
I G U ’ s P e r m a n e n t H e a d q u a r t e r i n L o n d o n
MGA organised a Regional Panel Discussion session at the IGU Council Workshop
MGA, in collaboration with IGU, organised Panel Discussion 2 at the IGU Council Workshop held on10th October 2019 in Yogyakarta, Indonesia. Themed “The Role of Gas in Fuelling Sustainable Growthin Asia”, the panel was moderated by MGA President, Hazli Sham Kassim, who is also IGU’s RegionalCoordinator for South and South East Asia.
Regional Trends in Financing Energy Projects in South
East Asia
Enhancing Gas Delivery Infrastructure to
Ensure Regional Energy Security
Supplying Gas to Geographically
Challenging Locations
The Role of Gas in Ensuring Energy Sustainability in South East Asia
Moderator
Eddy TanDBS Bank,Singapore
Abdul Razak Saim PETRONAS Gas
Berhad, Malaysia
Hari KaryuliartoIndonesian Gas
Society
James Ooi The Lantau Group,
Hong Kong
Hazli Sham KassimPresident of MGA
IGU Regional Coord.
SP
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& T
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This handy booklet summarizes the value ofnatural gas for meeting the most pressing globalenergy, climate, and economic challenges.
International Gas Union(IGU), Snam & The BostonConsulting Group (BCG)present the Global GasReport 2019, the newedition of the annual reportthat examines key globalgas market trends, lookingat recent developmentsand assessing progresstowards the leading rolethat gas is expected to playin the energy transition.
Global Gas Report 2019
Global Natural Gas Insights
S E C R E TA R I AT UPDATES
A M S Y A RThe Intern
R O S L ITechnical
A Q M AIltizam Trainee
(Communications)
P U T R IEvent
Management
A F I R AMembership
& Comms
S A R A HWorking
Committees
M U R N ICorporate Services
T A MFinance
R O S M A NSec Gen
F A S H AIltizam raintee
(Analyst)
S E C R E TA R I AT
Studying Bachelor of Business
Administration (Hons) in Management
and Entrepreneurship at
UniKL Business School
Shee loves to learn
more about everything
and spend most of her
spare time doing outdoor
activities.
R u s y d a
New Addition to the Team
i n t e r n s h i p
Open 16
H A Z L IPresident
International Visitors to MGA
Visiting Members Companies at Exhibitions
On 18th September 2019, MGA, led by Vice PresidentSeah Su Ying, received a delegation from City GasSingapore and its joint-venture with Osaka Gas, City-OGGas Energy Services Pte Ltd. They are keen to exploreopportunities and collaborations in Malaysia. Any MGAmember keen to connect with City Gas can contact us.
The Team