Malaysia Increases Natural Gas Power Generation, Reduces Coal Reliance in December
In December, Malaysia boosted natural gas power generation by nearly 5%, compensating for a 4.3% drop in coal-fired output, as natural gas supplied a significant portion of electricity to Peninsular Malaysia. Despite this increase, projections indicate that coal's share in power generation will rise from 56.5% in 2024 to 58.6% in 2025, while natural gas is expected to decline to 33.1%. Additionally, solar power generation grew by 12.6%, increasing its share to 2.4%.
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In December, Malaysia increased natural gas-fired power generation by nearly 5%, offsetting a 4.3% decline in coal-fired output, according to data from the Grid System Operator (GSO). Natural gas accounted for a significant portion of electricity supplied to Peninsular Malaysia, which represents approximately 80% of national demand.
While gas use is rising, Malaysia anticipates that natural gas will surpass coal as the primary power source only in the next decade. The country's natural gas output rose 11.8% year-on-year in the third quarter, contributing to a 29% decrease in LNG imports for 2025, which fell to 2.26 million metric tons, while exports reached a record 28.25 million tons.
Coal's share in annual power generation is projected to increase from 56.5% in 2024 to 58.6% in 2025, while the share of gas is expected to decline to 33.1%. Solar power generation also saw a 12.6% increase, raising its share to 2.4%.
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