Malaysia finalizes natural gas roadmap for energy transition

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Malaysia finalizes natural gas roadmap

Highlights

Malaysia’s natural gas roadmap, expected to be released in the third quarter of 2024, is still being prepared, with no launch date announced.
The roadmap is expected to change the country’s natural gas pricing, supply and regulatory mechanisms and align federal and state policies.
Natural gas is expected to rise to 56% of Malaysia’s primary energy supply by 2050, up from 43% currently, requiring long-term investment and planning.

This article was translated from the original. Read the original version by our correspondent here.

Gas sector framework still being finalized

As reported by The Edge Malaysia, Economy Minister Akmal Nasrullah Mohd Nasir said the government was still preparing the roadmap to ensure it translates into measurable projects, reforms and outcomes.

In a video recording released at the Malaysian Gas Association’s Malaysian Gas Symposium 2026, he said the roadmap would only be meaningful if it led to tangible implementation. However, he did not say when the roadmap would be launched.

The document was originally scheduled for release by the third quarter of this year. It is expected to reshape how natural gas is priced, supplied and regulated across the country, while aligning federal and state policies in Peninsular Malaysia, Sabah and Sarawak.

Implications for Malaysia’s energy transition

Akmal Nasrullah said the government remained committed to the National Energy Transition Roadmap, stressing that the energy transition must be implemented pragmatically while safeguarding security of supply and affordability, and gradually reducing emissions.

Natural gas remains important for power system flexibility, industrial production and high-value economic activity, he said. As a key transition fuel, natural gas is projected to account for 56% of Malaysia’s total primary energy supply by 2050, up from 43% currently.

He also stressed that decisions on gas supply and infrastructure involve long-term commitments. This, he said, means planning and investment must be made at the right time, starting now.

In our earlier coverage of the proposed “user-pays” electricity pricing system for large consumers such as data centers and energy-intensive industries, we explained the government’s rationale for distributing supply costs more fairly while limiting pressure on household bills. The article also examined the drivers of rising generation costs—including increased reliance on imported LNG—as well as demand management options such as time-of-use tariffs.

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