methods . AmBank Research in its February report assumed a 15 % decline in gas transport revenue in RP2 , which could translate into a 7 % decrease in its earnings forecast for the financial year ending December 31 , 2023 .
Malaysia consumes about 800,000 million standard cubic feet ( mmscf ) of gas in a year , which is supplied from local offshore assets ( around 640,000 mmscf ), with the balance coming from the Malaysia-Thailand Joint Development Area and through LNG imports .
In the short to medium term , PetGas will not be affected much by demand swings as it has locked in long-term contracts for the infrastructure of its three gas-related segments , with minimum capacity reservation payments , where it is paid as long as it makes the capacities available as per agreement .
On the flipside , the capacity for its gas processing and regasification segments have been fully booked , which suggests limited earnings growth prospects from the two businesses in the short to medium term . It is noted that PetGas ’ gas processing capacity of 2,060 mmscfd was unchanged in the last decade .
Malaysia ’ s Carbon Challenge ( Source : NST Leader )
Malaysia , like other nations concerned about global warming , has a net zero ambition . Its carbon neutrality target is 2050 . But the path there is not going to be a walk in the park . Not because Malaysia started late . In some things , Malaysia is an early riser , like in flattening the Earth-warming curve . Perhaps this is why Malaysia is not one of the 19 countries in the Asia-Pacific region which have not submitted its Nationally Determined Contribution to COP26 .
But having started rather early in 2009 ( long before the Paris Accords were signed , it must be said ), it lost its agility along the way . Blame it on Malaysia ’ s energy-centric economy . But Putrajaya appears to be getting serious .
If the EAC Dialogue in 2021 is any signal , the Government is preparing the economy for the climate challenge , especially with extreme weather events wreaking havoc from Kangar to
Kinabatangan . The Government is saying “ no ” to new coal-fired power plants .
Putrajaya is also said to be working on carbon reduction measures and low-carbon development strategies . Next year should see these implemented , if intent is turned into action . KPMG ’ s inaugural Net Zero Readiness Index ( NZRI ), released on October 14 , scores the intent and some action . Out of 32 countries , Malaysia emerged 22 nd . Not a bad score for a country fuelled by an energy-centric economy . But the country has miles to go before it puts carbon emissions to sleep .
Malaysia ’ s electricity- and heat-generating sector , by the reckoning of NZRI , contributes 34 % to emissions . This is not surprising as the country uses coal and gas to generate electricity . As it is , Malaysia ’ s installed capacity of coal-powered plants is a worrying 40 % of the total capacity .
Malaysia ’ s challenge will be how to decarbonise its energy-centric economy in the face of population growth pressures and poverty outside of urban areas .
Bank Negara Malaysia , the country ’ s central bank , is one such player helping to set the pace . Its Climate Change and Principles-based Taxonomy ( CCPT ) does several things , but its principal role is to help financial institutions push the transition to a low-carbon economy .
Petronas , Malaysia ’ s oil and gas producer , has taken the lead by saying it will go net zero in 2050 . But Malaysia ’ s economy isn ’ t driven by giants alone . The non-giants , otherwise known as smalland medium-scale enterprises , make up the bulk of the economy .
ASEAN nations bolster commitments with renewed call for Climate Action ( Source : ASIA News Network )
ASEAN diplomats renewed their commitment to the United Nations Framework Convention on Climate Change ( UNFCCC ), the Paris Agreement and COP-15 , especially the principle of shared responsibility for responding to climate change , according to a joint statement released by the 55 th ASEAN Foreign Ministers ’ Meeting ( AMM ) and related meetings hosted by Cambodia .
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