Cheap gas to TNB a one-off deal, says Petronas

Tenaga needs to find an additional source to assistance pay for the price difference, pronounced Petronas. File pic

KUALA LUMPUR, Mar 5 Petronas now reiterated its unwillingness to go upon offered subsidised gas to national energy association Tenaga Nasional Bhd (TNB) for the generation of electricity.

The state oil firms boss as well as arch executive, Datuk Shamsul Azhar Abbas, pronounced Petronass suggest to supply TNB with gas below marketplace rates was the one-off event as well as which the supervision should assistance pay for any destiny subsidies upon gas.

Never have you mentioned in the past which thats going to be the continuous kind of handout to TNB, he told reporters during Petronas domicile here today.

Its supposed to be one-off since you pity them, begging all over... which they dont have sufficient money now to work efficiently.

He pronounced Petronas was still watchful to listen to behind from Putrajaya upon its suggest to foot the third of the price to supply gas to TNB for the publics sake, indicating out which every RM3.00 subsidised would price the group some RM1.7 billion.

We sat down with 3 ministers 3 weeks ago as well as weve fundamentally due the review of the regulation which takes into comment made at home sensitivities.

So now its up to them to bring it up to the Economic Council. Were watchful for that, he said.

Shamsul Azhar pronounced in Dec which Petronas was no longer peaceful to provide gas subsidies to cover TNB inefficiencies.

His remarks came after the state energy association posted the net loss of RM453.9 million in the last quarter of 2011 after it switched to costly alternative fuels following the necessity in locally-supplied subsidised healthy gas.

He had pronounced Petronas would not go upon encouraging reliance upon cheap gas which disheartened efficiency, promoted marketplace distortions as well a! s was un sustainable in the prolonged term.

Petronas now provides subsidies of up to RM20 billion per year to the energy attention in the form of healthy gas rates during below marketplace prices.

Shamsul Azhar pronounced which the necessity of healthy gas will come to an end when the regassification depot in Malacca comes online in July or August this year, which would allow alien liquefied healthy gas (LNG) to be introduced to peninsular Malaysia.

He stressed, however, which outlay from the plant will be during marketplace prices.

Apart from Malacca, Petronas is office building dual other LNG regassification terminals in Pengerang as well as Lahad Datu, as well as is pronounced to be mulling the fourth in Lumut.