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The Tanjong Agas Industrial Park will accommodate the operations
and activities within the oil and gas and maritime industries such
as shipyards, fabrication yards, supply/logistics bases, a crude oil
and petroleum storage terminal and a LNG/gas receiving and
storage terminal. It will introduce support services and facilities
such as port and marine services, a centralized integrated utility
waste management plant, an oil and gas college, a five-star
mariners’ centre and business park. This park is projected to have a
storage capacity of two million cubic metres.
Vitol has signed an agreement with MISC Berhad to extend
their current storage facility in Tanjung Bin, Johor. This project is
expected to be commissioned in April 2012 with a base capacity
of 841,000 cubic metres. Tanjung Pelepas Port has also committed
to invest in expanding its existing storage facility, which has
a capacity of 3.25 million cubic metres. In Tanjung Langsat,
a consortium comprising of Dialog Group, MISC Berhad and
Trafigura will expand their existing storage facility to targeted
capacity of 1.027 million cubic metres by 2014.
EPP 5
Unlocking Latent Gas Demand
The lack of gas supply, driven by declining domestic gas
production, is cited to have resulted in limited additional
investment from new industries, e.g. glass and plastics
manufacturers and semiconductor wafer manufacturers, as well
as preventing current industrial diesel and liquefied petroleum
gas (LPG) users from switching to more competitively priced
natural gas. It is estimated that there would be more than 500
million standard cubic feet per day (mmscfd) of additional
latent gas demand by 2020.
Domestic gas supply, including imports from Indonesia and the
Joint Development Area with Thailand, is expected to decline at
12 per cent per year in the coming decade. Furthermore, there
is insufficient gas supply in the region to support additional
piped gas imports into Malaysia. To meet this growing latent gas
demand, a liquefied natural gas (LNG) regasification terminal
will be built to treat imported LNG. To make gas imports
economically feasible, the gas will be sold at a liberalised and
unsubsidised price.
Malaysia-based Muhibbah Engineering Bhd in concert with
Perunding Ranhill Worley has been awarded a contract for
the Engineering, Procurement, Construction, Installation and
Commissioning alliance for an LNG regasification unit, island
berth and subsea pipeline of the LNG Regasification Project from
PETRONAS Gas Berhad.
The contract is valued at approximately RM1.07 billion, under
which the consortium will undertake the construction of the
LNG regasification unit, island berth and subsea pipeline. These
facilities will be constructed near the Sungai Udang Port, Melaka
with a capacity to send out 3.8 million tonnes of gas per annum.
Moving Forward
Over 2011, several large corporations and consortiums have
committed to construct and expand on petroleum storage
terminals. The focus in 2012 will be ensuring that these projects
are implemented, with several slated to be commissioned over
the course of the year. In addition to this, we will work to ensure
that plans for future phases of these facilities are realized.
Achievements
NKEA: Oil, Gas and Energy EPP 3 – EPP 5
PETRONAS is embarking on the country’s first regasification
terminal in Melaka. The facility is designed to receive, store and
vaporize LNG with a maximum capacity of 3.8 million tonnes per
annum (mtpa) (up to 530 mmscfd). Its Jetty Regasification Unit will
regasify the LNG (into its gaseous form) and the natural gas will be
transported to demand centres through the existing Peninsular
Gas Utilisation network. The project is estimated to be ready for
commissioning by third quarter 2012, ahead of schedule which
projected the first phase to be operational in 2013.
In December 2011, PETRONAS Gas Bhd set up a code of conduct
which defines standards of behaviour and disclosure in respect
of the provision of third-party access to the gas transportation
system operated by the company in Peninsular Malaysia.
Designed to provide a framework and a clear third-party access
regime through wide, transparent and uniform principles to allow
entities to gain access to the gas transportation system, the code
will also ensure transparency, and fair and equitable practices in
all transactions within the gas transportation system.
Moving Forward
The focus in 2012 will be to ensure that the regasification terminal
is commissioned in Q3 2012. This, coupled with PETRONAS’s set
up of a code of conduct marks the beginning of the liberalisation
of the natural gas market in Malaysia. Efforts to bring the sale of
natural gas by PETRONAS up to market prices will also continue.
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