Malaysia to Become Net Importer of Gas and Oil by 2017 image

Malaysia is expected to become a net importer of oil and gas in 2017 due to rising domestic demand, said the International Energy Agency (IEA).

IEA executive director Maria van der Hoeven also said that China could become world’s third gas importer after Europe and Asia Oceania, driving average annual growth at 2.7% in global gas demand by 2017. IEA report also predicts North America to become an exporter of net liquefied natural gas and Japanese imports will increase.

The Malaysia government recently announced new tax incentives to help development of new oil resources, stimulate domestic exploration and boost hard-to-reach oil fields commercialization. These tax incentives could be considered an assurance that Malaysia still has enough gas and oil for exports in the next few years.

The national oil corporation, Petroliam Nasional Bhd (Petronas), estimated the new incentives will help unlock 1.7 billion barrels of oil, which translates in RM75 billion over the next 15 or 20 years. one incentive outlined under the Economic Transformation Programme is aimed at qualifying exploration expenditure transfer among non-contiguos petroleum agreements to help and encourage contractors do more explorations.