Natural gas in Malaysia

Natural Gas in Malaysia

Malaysia has the 14th largest gas reserves as at January 2008.
As at January 2008, Malaysia's gas reserves stood at 88.0 trillion standard cubic
feet (tscf) or 14.67 billion barrels of oil equivalent, approximately three times the
size of crude oil reserves of 5.46 billion barrels.

In 2007, Malaysia's production of natural gas averaged 7.01 bscf per day.
As at 31 March 2008, Malaysia had 88 producing fields of which 61 were oil
fields and 27 gas fields.
About 50% of these producing fields are solely operated by PETRONAS's
subsidiary, PETRONAS Carigali.

MALAYSIAN NATURAL GAS RESERVES

Malaysia is ranked 14th in the world in terms of its gas reserves. As at 1 January
2008, the natural gas reserves in Malaysia stood at 88.0 trillion standard cubic feet
(tscf) or 14.67 billion barrels of oil equivalent, approximately three times the size of
crude oil reserves of 5.46 billion barrel. Of this, 33.5 trillion standard cubic feet (tscf)
or 38% is found off the East Coast of Peninsular Malaysia, 41.8 tscf (48%) offshore
Sarawak and the remaining 12.7 tscf (14%) offshore Sabah. At the current rate of
production, Malaysia's gas reserves expected to last another 36 years.

PENINSULAR GAS UTILISATION

PROJECT
In 2007, Malaysia's production of natural gas averaged 7.01 bscf per day.
As at 31 March 2008, Malaysia had 88 producing fields of which 61 were oil fields and
27 gas fields.
About 50% of these producing fields are solely operated by PETRONAS's subsidiary,
PETRONAS Carigali.
The PGU Project, which commenced in 1984, now spans over 1,700km, comprising
main gas transmission pipelines, supply pipelines and laterals.
The system also comprises of six gas-processing
plants with a combined capacity of 2,000 million
standard cubic feet per day (mmscfd), producing
methane, ethane, propane, butane and
condensate.
A typical pipeline may contain a pressure of about
65 atmospheres. The gas moves at about 24km/h

Pipe Lines

PGU, TTM and TAGP

Peninsular Gas Utilisation (PGU) system was operational in
December 1997
Development of the Trans-ASEAN Gas Pipeline (TAGP) system
to ensure the security of energy supply in the region by 2020.
360 km Trans Thailand - Malaysia (TTM) Gas Pipeline system
was linked to the PGU pipeline system to transport gas from
Changlun in the northern part of Peninsular Malaysia to the
Malaysia Thailand Joint Development Area (MTJDA),
an average of 330 million standard cubic feet per day
(mmscfd) of sales gas from Phase 1 of MTJDA is being
transmitted through the PGU system since 20 February 2005.

TTM, MTJDAPGU, TAGP

In July 2005, the Gas Separation Plant owned and operated by Trans Thailand Malaysia (Thailand) Ltd. - 50:50 joint ventures between PETRONAS and the Petroleum
Authority of Thailand - commenced operation.
With this commissioning, additional gas supply from the MTJDA is made available into
the PGU system, hence enhancing the security of gas supply to Peninsular Malaysia in
addition to existing supply from Kertih, Terengganu.
At the same time, the additional gas supply provides a significant fit to the
forthcoming TAGP network.
The supply for Peninsular Malaysia is also complemented by the gas from the
Indonesian West Natuna B and the PM3 fields (Commercial Allocation Arrangement
between PETRONAS Carigali Sendirian Berhad, Talisman and PETROVIETNAM) at the
current average rate of 245 mmscfd and 120 mmscfd respectively.

Enhancing security and sustainability

of gas supply
Production of gas from indigenous sources is expected to decline in a decade, based on
current reserves.
Malaysia imports gas from the neighbouring countries West Natuna B (Indonesia)
and JDA.
to date about 20% of Peninsular Malaysia's gas demand is met by import sources.
This is expected to increase when the volume from West Natuna B and JDA increases
to 250 mmscfd and 390 mmscfd respectively.
Future gas development from domestic reserves will be more challenging. The
future reserve fields have the following characteristics:
High CO2 content ranging from 12% to 40%.
Smaller fields and fields that are scattered far from existing developed fields
High cost of development
PETRONAS also plans to introduce various measures such as
capping the demand (in the short term),
assessing potential import sources and
doubling efforts to monetise gas from high CO2 and small gas fields

CO2 Removal-Cryogenic Process

A process for pretreating a natural gas stream having greater than about 40
mole % carbon dioxide
Step 1: passing the gas stream through a separator zone
at a temperature of from about 30 to about 80 F.
at a pressure of from about 600 psia to about 1200 psia
to remove liquid condensate and
Step 2. passing the gas stream through a stripping zone
at a temperature of from about -20 to about 0 F.
at a pressure of from about 600 psia to about 1200 psia
to remove most of the carbon dioxide content
as liquefied carbon dioxide.

Fuel Mix for Electricity Generation

Coal
Oil
Gas
Hydro
Other

2002
6
9
74
11

2010
36
1
56
7
1

2020
45
1
48
6
1

2030
50
0
45
4
1

Natural Gas Consumption by Sectors

1990 - 2007