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In 1969, Neil Armstrong, the first man to walk on the Moon, described his first steps with these immortal words: “That’s one small step for man, one giant leap for mankind.”
Unfortunately, Malaysia took a big step back last week when the government banned the use of compressed natural gas (CNG) as a fuel for vehicles. The move comes at a time when governments around the world are seeking a just energy transition and a sustainable carbon-free future. In Malaysia, CNG and natural gas (CNG) are used interchangeably but not as a substitute for methane gas. CNG and CNG are very different from liquefied petroleum gas (LPG), the butane gas that Malaysians use in their kitchens. Almost two weeks ago, Transport Minister Loke Siew Fook announced that the industry had decided to ban CNG and NGV because they were deemed unsafe.
This leaves an estimated 44,000 CNG vehicles running on natural gas with no choice but to switch to high-quality gasoline or diesel. The ban drew unwanted attention from gas-powered car users around the world.
Nigerians, in particular, were alarmed and forced their government to issue several statements to dispel the unwarranted fears about CNG created by their Malaysian counterparts. Since October last year,
Nigerian President Bola Tinubu has supported the development of CNG in his country as part of the presidential plan.
Launched last October, the scheme provides free conversion kits to vehicle owners in targeted segments of the transport sector. Nearly 100,000 vehicles have already been converted to CNG. Nigerian presidential spokesman Bayo Onanuga said of the Malaysian ban:
“The end of the 15-year lifespan of CNG tanks means that gas vehicle operators in Malaysia will have to replace their tanks. It is easier or cheaper to abandon the program and continue with gasoline and diesel, because Malaysia has not yet built a tank manufacturing capacity, which Nigeria has already started in the first year. »
Building a CNG manufacturing plant requires a huge demand for cylinders and a large investment. However, Malaysia does not have the ambition to support such a model, but CNG cylinders are available worldwide due to the successful implementation of CNG as a low-cost vehicle fuel in India, China, the United States and, of course. Nigeria.
In Malaysia in the 1970s, when natural gas was discovered in abundance, the government promoted it as a cheap, low-carbon transport fuel, with the oil company Petronas as its sponsor. At that time, the gas pricing system was set at half the price of conventional petrol, which was around RM1.80 per litre.
Over time, the price of liquid fuel rose dramatically and political leaders supported the price of NGV/CNG, effectively distorting the price system. Petronas had to choose between selling gas at a price below world prices and contributing significantly to government revenues. Since then, it has no longer supported the sale of compressed natural gas (CNG) or compressed natural gas (CNG). Ironically, Petronas was also the first to establish safety standards for converting internal combustion engines to engines that run on cheap and affordable natural gas.
Now, let’s talk about natural gas as a fuel for vehicles and the energy transition to a carbon-free future. It is recognized that car travel is difficult to decarbonize. That is why car and truck manufacturers are trying to find solutions to fuel their vehicles. It is increasingly recognized that cars and trucks will also move from internal combustion engines (ICE) to battery electric vehicles (BEV) with gas from gasoline and electricity as the central system.
In fact, Malaysia, the world’s second largest palm oil producer, has significant potential to produce gas from palm oil waste. Not only is it a more sustainable fuel compared to fossil fuels, but it also produces about 30% fewer carbon emissions than gasoline and diesel.
In addition, capturing the gas from palm oil waste prevents it from becoming a greenhouse gas (GHG) 30 times more toxic than carbon dioxide. Similarly, about a week ago, China approved an energy policy that includes gas, especially hydrogen, as a source of energy, removing its previous classification as a hazardous chemical.
Starting next year, when its energy policy takes effect, China will promote hydrogen as the cleanest energy source of the future through a series of measures, including a pricing mechanism to make it more economically viable. China’s energy policy prioritizes renewable energy and supports the use of non-fossil and low-carbon alternatives to fossil fuels.
The energy policy for Malaysia should include the federal and Sarawak ministries responsible for the economy, industry, natural resources and tourism. Sarawak, which has a large amount of hydropower to produce green hydrogen, is leading the way in the hydrogen economy with multi-billion ringgit hydrogen projects, including two hydrogen plants and a public transport system, Autonomous Rapid Transit, which is scheduled to be operational by 2027.
It’s not just about biomass and gas: Abu Bakar Jaafar, a former member of the Ocean Thermal Energy Centre at Universiti Teknologi Malaysia, is also concerned about the neglect of the ocean as a source of energy. Hydropower is a test area in Japan, and a pilot plant is also located in Port Dickson.
Natural gas as a fuel does not pose a risk. Instead, the real danger comes from the Transport Ministry’s inertia regarding the safety review that the Malaysian NGV Installers Association (or Mangvi) has been calling for since its first meeting with the Road Transport Ministry in 2014.
But the inaction of JPJ and Puspakom, the private vehicle technology review agency, on the CNG/CNG issue is a story for another day. For now, Malaysia needs an energy policy leader to guide it in its gradual transition to a zero-carbon future. The chosen one will implement key steps in the national energy transition roadmap, particularly one that will remove Petronas from its role as the sole supplier of CNG/NGV.
