Asean countries pressed to enhance use of natural gas

KUALA LUMPUR, Malaysia – The use of natural gas plays a big role in the development of the overall oil industry of the region according to a regional oil industry player.

Malaysia-based Petroliam Nasional Bhd (Petronas) said ASEAN member countries should intensify efforts to enhance the use of natural gas as an alternative source of energy to provide a more practical solution to the region’s future energy needs.

During the second day of the 7th ASEAN Council on Petroleum (ASCOPE) Conference, Petronas president and CEO Mohd Hassan Marican said the region’s total oil reserves of 11 billion barrels might not be sufficient to meet its future requirements.

"The increase in the utilization of gas in the region will free up the region’s oil production to earn vital foreign exchange for producing countries as well as prolonging the life of oil reserves," he said.

He said the increase in the usage of natural gas will also lead to a cleaner environment.

"The abundant gas reserves at 235 trillion cubic feet provide a more practical solution to the region’s future energy needs. ASEAN, therefore, must tread with caution and prudence to ensure a proper and effective development of its indigenous resources to bring about the desired result that would benefit the whole region and future generations," Marican said.

ASEAN is by far the largest producer of liquefied natural gas (LNG) in the world with a combined production capacity of about 60 million tons per year.

The island of Borneo, which is shared by Brunei, Indonesia and Malaysia, is the largest single LNG producer in the world with a combined capacity of about 52 million annually.

The Philippines, meanwhile, has its own natural gas reserves in Malampaya in northwest Palawan, which is expected to fuel power generation plants, with an aggregate capacity of 3,000-megawatts (MW), over the next 20 years.

According to Marican, the development of natural gas resources should be complemented by the Trans-ASEAN gas pipeline that would provide easy access to the gas reserves among ASEAN member-countries.

"The infrastructure would monetize the region’s vast natural gas resources and help fuel the region’s industrialization process to enhance the macroeconomic development of the region as a whole," he explained.

Organization of Petroleum Exporting Countries (OPEC) secretary-general Ali Rodriguez-Araque said OPEC’s member countries should take the necessary steps in tapping the enormous gas potentials that exist within their borders.

"Iran, with an estimated 23 trillion cubic meters of gas has the world’s second largest reserves after Russia. The National Iranian Oil Co. is planning a pipeline that will convey gas from the huge South Pars to India," Rodriguez said.

Another OPEC member, Qatar has plans of constructing a gas pipeline that will pass through about six countries to China at a cost of more than $10 billion.