-    Abundant local natural gas reserves
-    39 CNG refuelling stations and 14,700 NGV's currently
-    Heavy duty programs currently under development
-    CNG half the price of petrol
-    Target of 94 refuelling sites and 57,000 vehicles by 2009

Malaysia’s gas reserves stand at approximately 82.5 trillion standard cubic feet (as at January 1, 2005).  Gas production has grown into a huge industry, with gas utilised for export, feedstock and as an energy source.  PETRONAS, the National Oil Corporation has been championing the development of Natural Gas for Vehicles (NGV) in the country.  The key driving factors for pushing NGV are energy utilisation and environment.

NGV Development

In 1995, PETRONAS established a wholly owned subsidiary, PETRONAS NGV Sdn. Bhd. (PNGV), to undertake the development and commercialisation of NGV in Malaysia.  PNGV’s major task is the construction of CNG refuelling outlets in targeted urban areas.  These refuelling outlets are mainly constructed where piped natural gas is available and where the air quality is deteriorating due to vehicle exhaust emissions.   

Currently, there are 39 PETRONAS service stations in Malaysia providing CNG refuelling facilities to a population of around 14,700 natural gas vehicles. Of the total, 32 stations are located in Kuala Lumpur, 4 in Johore, 1 in Penang and 2 stations are in Seremban.  PNGV is in the midst of setting up more CNG refuelling facilities, as part of its on-going expansion programme.  CNG is supplied to these stations via natural gas distribution pipelines, where available, as well as via road trailers (mother-daughter system).

Bi-fuel vehicles dominate the natural gas vehicle population in Malaysia with the users mainly being city taxis.  The only OEM operating on the road currently is the Enviro 2000 NGV Taxis, the exception being a few units of the NGV Mercedes Vito in operation.

PETRONAS undertook a major initiative by jointly manufacturing (with a company in France) 1,000 units of the Enviro 2000 NGV Taxis in 1998.  Developed according to international standards, the Enviro 2000 is made of advanced composite material that is light, durable and strong.  The taxis are specially designed for the comfort of passengers by providing a spacious and comfortable interior with rear and forward facing seats for up to five passengers.

PNGV is now moving towards the use of NGV for heavy-duty vehicles specifically buses and trucks.   Currently there is one MAN CNG bus in operation in Putrajaya (Malaysia's Federal Administrative Capital).  Two Daewoo buses are currently being prepared for operation.                  

Government Support

Government support for NGV development is reflected by the exemption of duty on the sale of CNG.  This has made it possible to price CNG at 63.5 sen/litre equivalent of petrol (US 16.7 cent/litre equivalent), about half the price of unleaded petrol. The retail price of the various automotive fuels in the country is shown below.

Retail Prices of Various Automotive Fuel in Malaysia

The government has also exempted the import duty and sales tax on NGV conversion kits to reduce the capital cost of vehicle owners, thus reducing the payback period for the conversion.  In addition, NGV users also enjoy a reduction in road tax (from the prevailing rates) of up to 25% for bi-fuel and dual-fuel vehicles and 50% for monofuel natural gas vehicles. To further promote the industry, the government has granted an accelerated capital allowance for purchase of monofuel natural gas buses and the construction of CNG outlets.

PETRONAS NGV works closely with the industry to achieve its objective in promoting the development of NGV and its technology in the country.  PETRONAS NGV targets to have a total of 94 CNG refueling outlets around the country capable of serving about 57,000 natural gas vehicles by the year 2009.


ANGVA 2005 Conference & Exhibition

Malaysia has been chosen to host the inaugural Asia Pacific Natural Gas Vehicles Association Conference & Exhibition (ANGVA 2005), from 26th July to 28th July 2005.  PETRONAS, the Malaysian Gas Association and ANGVA are jointly organising this event.  The event is targeted to provide a platform for fostering stronger collaboration and sharing of knowledge and innovative ideas among participants from all over the world.  More information www.ANGVA2005.com