KUALA LUMPUR (Feb 10): Petrolife Aero Sdn Bhd said it has inked a gas sale agreement (GSA) with Petronas Energy & Gas Trading Sdn Bhd (PEGT), the processed gas trading and marketing arm of Petroliam Nasional Bhd (Petronas).
In a statement, Petrolife said that under the GSA, PEGT will supply natural gas to Petrolife for a five-year period beginning Jan 1, 2022.
With the GSA, Petrolife has successfully shipped natural gas to industrial customers since the start of the year, according to the statement.
“The agreement cements Petrolife’s position as one of several shippers of natural gas in Malaysia, following the full liberalisation of the non-power sector natural gas market under the third-party access (TPA) mechanism from 2022 onwards,” the company said.
The full liberalisation of Malaysia’s gas market in the non-power sector beginning this year has allowed third-party shippers to supply natural gas to industrial and commercial customers.
Petrolife managing director Datuk Mohd Aqliff Shane said the company is committed to support the TPA mechanism and the industry liberalisation.
“By encouraging the use of natural gas, we are aligning the industries with the government’s net zero carbon ambition while ensuring greater economic growth,” Mohd Aqliff said.
“We would like to thank PEGT for this maiden collaboration and we look forward to more partnerships as Petrolife further establishes its market presence as a trusted natural gas shipping company in Malaysia,” he added.
PEGT chief executive officer Mohd Khairuddin Khalik said, “With this new partnership, PEGT and Petrolife will continue to supply natural gas to domestic users via flexible energy solutions and competitive pricing whilst [aspiring] to pursue more collaboration in near future.”
Petrolife also strives to set new benchmarks in “proving that the gas market liberalisation can be done successfully”, said Petrolife commercial and trading director Samsul Ariff.
“For the industry, the entry of new players such as Petrolife will encourage a more efficient price discovery process, foster better productivity, and entice greater investments across the gas value chain in the years to come,” Samsul said.
The development is a step forward in the operationalisation of the TPA by the government to strengthen Malaysia’s energy security, and to improve the efficiency of the natural gas ecosystem through increased industry participation, Petrolife added.