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State expedites diesel storage approvals to support businesses amid gas supply cut

16 Apr 2025, 12:00 AM
State expedites diesel storage approvals to support businesses amid gas supply cut
State expedites diesel storage approvals to support businesses amid gas supply cut
State expedites diesel storage approvals to support businesses amid gas supply cut
State expedites diesel storage approvals to support businesses amid gas supply cut

By Danial Dzulkifly

SHAH ALAM, April 16 — The Selangor government is expediting local authority approvals for businesses to store diesel on site to cushion the impact of the gas supply disruption after the April 1 Putra Heights pipeline explosion.

State executive councillor for investment, trade and mobility Ng Sze Han said the initiative is one of several urgent steps being taken to support companies, particularly those dependent on cold storage, in keeping raw materials intact and maintaining operations.

“We are also in constant communication with PetGas (Petronas Gas Bhd) and other stakeholders to accelerate the full restoration of gas supply,” he told Media Selangor during Invest Selangor’s Aidilfitri Business Networking 2025 event held at the MBSA Convention Centre here yesterday.

Ng, who chaired a stakeholder engagement session on April 9, said the meeting gathered representatives from the state administration, the Energy Commission, the Federation of Malaysian Manufacturers (FMM), PetGas, pipeline operator Gas Malaysia Bhd, and impacted industry players.

Yesterday, he said he is constantly engaging with industry players and FMM’s affected members to find the best way forward.

The blast on April 1 disrupted the Segamat-Kapar sector of the Peninsular Gas Utilisation pipeline, a critical transmission route supplying gas to industrial zones in Selangor.

As a result, affected manufacturers have been forced to scale back production or switch to more expensive alternatives, such as diesel or fuel oil.

[caption id="attachment_397606" align="aligncenter" width="1200"] State executive councillor for investment, trade, and mobility Ng Sze Han delivers his speech during the Brazil x Malaysia Bilateral Semiconductor Industry Development programme at the Four Points by Sheraton Hotel in Puchong on April 10, 2025. — Picture by HARUN TAJUDIN/MEDIA SELANGOR[/caption]

In a report published on Monday by The Edge, Ng acknowledged the economic impact of the incident is still being assessed, but confirmed certain sectors are already suffering.

While the state government’s priority remains the welfare of displaced residents, Ng said efforts are also underway to ensure the swift recovery of the industrial ecosystem.

Industries such as steel manufacturing, rubber gloves, food and beverage, and pharmaceuticals are among the most reliant on liquefied natural gas.

While some operations, such as those using boilers, can temporarily shift to alternative fuels, others that rely directly on gas for key processes like melting or heating have no immediate substitute.

The Energy Commission is currently prioritising gas supply to essential services, including power generation, hospitals, food processing, and pharmaceuticals.

Industry players, however, continue to contend with reduced gas pressure and partial shutdowns.

[caption id="attachment_397562" align="aligncenter" width="1200"] Speaker Dewan Negeri Selangor Lau Weng San menunjukkan laporan kaji selidik isu infrasturktur berkaitan pelaburan di Selangor ketika sidang media di Wisma Dewan Negeri Selangor, Shah Alam pada 15 April 2025. Foto AHMAD ZAKKI JILAN/MEDIA SELANGOR[/caption]

Meanwhile, Selangor State Legislative Assembly Speaker Lau Weng San indicated that the upcoming assembly sitting, expected in July, will include a debate on the incident, especially on the need for buffer zones between industrial infrastructure and residential areas.

“The matter is still under investigation, and I am certain the executive will carry out their duties to resolve the problem.

“The legislative will definitely discuss and debate this issue, and I hope there will be more vigorous debate, especially on proposals to establish safer routes and buffer zones.

“All developments within each local council are subject to the local plan. Therefore, the debate should focus on the buffer zone distance outlined in the plan. In this case (Putra Heights), under the MBSJ (Subang Jaya City Council),” he said in a press conference yesterday.

He added that future development plans, especially those under local authorities like MBSJ, must place greater emphasis on safety, particularly in high-risk industrial areas.

The Putra Heights blast on the second day of Aidilfitri triggered a massive blaze, with flames reaching over 30m high and temperatures soaring to 1,000°C.

The fire took nearly eight hours to extinguish.

The incident affected 219 homes — 81 destroyed and another 81 damaged — and impacted 1,254 residents from 308 families.

[caption id="attachment_396945" align="aligncenter" width="1200"] A victim of the April 1 Putra Heights gas pipeline explosion shows Media Selangor a screenshot of the resulting inferno that day, when met at the Putra Heights Mosque temporary relief centre in Subang Jaya, on April 10, 2025. — Picture by FIKRI YUSOF/MEDIA SELANGOR[/caption]

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Media Selangor Sdn Bhd, a subsidiary of the Selangor State Government (MBI), is a government media agency. In addition to Selangorkini and SelangorTV, the company also publishes portals and newspapers in Mandarin, Tamil and English.