Petrolife’s Virtual Gas Pipeline to catalyse new industrial developments off-grid KUALA LUMPUR, Jan 15 (Bernama) -- Kelantan recently witnessed the opening of its maiden natural gas-powered manufacturing facility, thanks to a local energy services company that made it possible for industrial-sized delivery of natural gas into the state without a pipeline. So when one of Malaysia’s largest glovemakers – typically known as among the largest non-power industrial consumers of natural gas – expanded its manufacturing facility in Kelantan and significantly increased the facility’s reliance towards natural gas, it certainly raised eyebrows, as the state still does not have the pipeline infrastructure in place to-date.
The off-grid gas delivery was made possible by integrated energy company Petrolife Aero Sdn Bhd, which is the first company in Malaysia to offer virtual pipeline system (VPS) for liquefied natural gas (LNG) since 2019.
In a nutshell, a virtual gas pipeline allows the delivery of LNG from any LNG terminal in Malaysia to any desired location via ISO tankers on land.
The VPS opened up a new opportunity: natural gas can now be delivered anywhere in Malaysia in the massive quantity required by gas-powered industrial facilities, even if the facility is off the grid or without a physical pipeline.
“The agreement with this massive glovemaker outfit marks Petrolife Aero Sdn. Bhd. first term LNG supply agreement in Malaysia,” said Petrolife Aero Sdn. Bhd. managing director Datuk Mohd Aqliff Shane Abdullah in an interview.
“This exemplifies the trust from our client towards our delivery capabilities, where we provide stable and consistent gas supply in the quantity needed, on time, at a competitive rate which makes it the viable choice for the manufacturer to set up its facility away from your typical industrial locations like in the West Coast,” said Mohd Aqliff.
Making the most efficient fuel more accessible One of the reasons natural gas is preferred energy source for the power and industrial sectors is due to its thermal efficiency. The commodity is also seeing stable demand despite the rise of green energy, and for good reasons, said Samsul Ariff Idris, Director, Commercial and Trading at Petrolife Areo Sdn. Bhd.
“Among all types of fossil fuels, natural gas produces the least carbon dioxide per unit of energy generated,” Samsul said. “This also makes it the preferred transitional fuel source which is more practical to store and transfer than renewable energy,” he added.
The growth in gas consumption as an alternative to other fossil fuels is also in line with the Government’s intention to reduce its carbon emissions by 45% from its 2005 levels by 2030.
However, one long standing challenge, is that the physical pipeline was the sole practical means of delivery – until recently.
“At Petrolife Aero LNG, it is all about Delivering Cleaner Energy. With our VPS service, natural gas is liquified at a cryogenic temperature of -160 °C, to be transported in liquid form (LNG) and regasified upon delivery for consumption.
“The liquification process shrinks the volume by a factor of around 600 times – allowing a bigger quantity of natural gas to be delivered with lower loss of molecule in transit,” Samsul said.
As an extension to the LNG VPS delivery service, Petrolife Aero LNG also provides the technical service to store the product in LNG form on-site, or to transform the LNG back to gas via regasification method for consumption.
“Amid Malaysia’s greenhouse gas emissions commitment, Petrolife is promoting and creating new demand for cleaner energy, in supporting the Government’s aim of achieving its sustainable development goals in line with international best practices,” he added.
Supporting equitable socioeconomic growth with off-grid delivery Additionally, Petrolife Aero LNG also provides full-fledged services to establish a co-generation unit on-site with generation capacity between 50MW and 100MW, together with the technical guidance needed to run the power plant and the manufacturing facility – all off-grid.
All these options give significant advantages for manufacturers currently relying on natural gas. With a minor trade-off on LNG delivery costs, a manufacturer can secure much cheaper overall energy costs for operations; and can set up facilities in less-crowded locations, resulting in lower costs for land, facility development, and labour costs, which ultimately improves the overall margins involved.
It instantly resolves one of the biggest challenges experienced by business owners seeking to expand their manufacturing facilities outside of key industrial areas like Kuala Lumpur, Selangor, Johor and Pulau Pinang – the stable sourcing of gas for energy or chemical supply.
For states like Kelantan, VPS opens new doors for economic opportunities, which also supports job creation and industrialisation. The state’s competitiveness in terms of labour and land costs is made much more attractive now that natural gas supply is much more accessible.
Indirectly, the VPS supports the Shared Prosperity Vision championed by the Government – as it facilitates equitable growth in rural states, at the same time provides the opportunity for these states to enjoy the abundance of gas supply in Malaysia that has long been an engine of growth for states with access to the energy source.
Industry pioneer in delivering LNG via Virtual Pipeline System since 2019 Interestingly, the delivery of LNG via the virtual pipeline to Kelantan is not Petrolife Aero LNG’s first LNG delivery in Malaysia.
“Petrolife Aero LNG is the industry pioneer in both the virtual pipeline system solutions, as well a small scale LNG imports into the country,” said managing director Mohd Aqliff.
Petrolife Aero LNG, Mohd Aqliff explained, was awarded the license to import LNG and natural gas into Malaysia since 2018 from the Energy Commission.
“We have provided spot supply since 2019 to clients in Klang and Johor. This is the testament that we are equipped with the expertise and experience to champion this market,” Mohd Aqliff added.
“We are the first to conduct the full-fledged service in Malaysia, from LNG import to LNG off-grid delivery and to on-site regasification. Alhamdulillah, the industry understands the opportunities brought about by the VPS, demand has been encouraging and we are on track to achieve our total daily volume supply target of 10,000 mmbtu for 2021,” Mohd Aqliff added.
Expanding into East Malaysia; Sabah Small Scale LNG on the drawing board Having established its name among gas consumers in Peninsular Malaysia, Petrolife Aero LNG has its next market expansion plan laid out for 2021 – to provide the full-fledged service in East Malaysia.
“The VPS will allow companies to take advantage of the vast available space in East Malaysia, to set up factories close to logistics infrastructure, sources of raw materials, or human resource, without being restricted by concerns over gas supply delivery.
“This will open up new possibilities for industrial players in Sabah and Sarawak, and act as a economic growth multiplier in the surrounding area,” Mohd Aqliff said.
Petrolife Aero LNG is currently close to achieving a final investment decision for the development of a small-scale LNG terminal in Sabah, shared Mohd Aqliff. The company has identified a suitable land for the development, and the acquisition process is ongoing.
This, he said, will provide the much-needed capacity that will ensure security of gas supply to power new industrial areas or large scale factories. In the pipeline, the group has a 50 MW co-generation plant project with a client to secure the offtake from the LNG terminal.
“We are confident of our track record in LNG delivery. This is combined with our expertise across the entire supply chain, and the necessary regulations and Government policies in place to facilitate LNG delivery, storage and consumption.
“Petrolife Aero LNG is ready to assist the market to establish their facilities in the best place possible without ever worrying about securing the supply of natural gas,” he added.
SOURCE : Petrolife Aero Sdn Bhd
FOR MORE INFORMATION, PLEASE CONTACT:
Name : Samsul Ariff Idris
Petrolife Aero Sdn Bhd
Tel : 0178780347
Email : sam.ariff@petrolife.com.my--BERNAMA 
