The International Energy Agency (IEA) in a new report, has predicted that Malaysia would become a net importer of oil and gas in 2017, due to increasing domestic demand.

IEA executive director Maria van der Hoeven said Malaysia, which is the world’s third oil and gas exporter at present, would become like neighbouring Indonesia by that year.

“The Medium-Term Gas Market Report 2012, also suggests that China could become the third-largest gas importer behind Europe and Asia Oceania, driving at 2.7 percent, average annual growth in global gas demand through 2017,” she told reporters at the World Gas Conference 2012 in Kuala Lumpur today.

The report, released today, also predicted that North America would become a net liquefied natural gas (LNG) exporter during the period, while Japanese imports would increase, although by how much, hinges on the country’s nuclear policies.

While the IEA report sees growth for natural gas in most regions, van der Hoeven said low economic progress, relatively high gas prices and strong growth of renewable energies would limit demand in Europe.

“Successful and timely developments of new resources should lift gas demand in the Middle East, Africa and Asia,” she added.

She said the report also reveals that a quarter of new gas demand would come from China, another quarter from the Middle East and other Asian countries combined, and a fifth from North America.

“The global gas trade will expand by 35 percent, driven by LNG and pipeline gas exports from the former Soviet Union region. Most of this expansion will occur from 2015 onwards, following a period of further tightening of global gas markets,” van der Hoeven added.

- Bernama