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

By Yow Hong Chieh

March 05, 2012

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

KUALA LUMPUR, March 5 Petronas now reiterated a rejection to continue selling subsidised gas to national energy association Tenaga Nasional Bhd (TNB) for a generation of electricity.

The state oil firm's president as well as chief! executi ve, Datuk Shamsul Azhar Abbas, pronounced Petronas's suggest to supply TNB with gas next marketplace rates was a "one-off" event as well as which a government should assistance compensate for any future subsidies upon gas.

"Never have you referred to in a past which that's starting to be a continuous kind of handout to TNB," he told reporters during Petronas headquarters here today.

"It's ostensible to be one-off since you pity them, begging all over... which they do not have sufficient cash right away to work efficiently."

He pronounced Petronas was still watchful to listen to behind from Putrajaya upon a suggest to feet a third of a price to supply gas to TNB for a public's sake, pointing out which each RM3.00 subsidised would price a group a little RM1.7 billion.

"W e sat down with 3 ministers 3 weeks ago as well as we've fundamentally due a examination of a formula which takes into comment domestic sensitivities.

"So right away it's up to them to move it up to a Economic Council. We're watchful for that," he said.

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

His remarks came after a state energy association posted a net detriment of RM453.9 million in a last quarter of 2011 after it switched to expensive alternative fuels following a shortage in locally-supplied subsidised healthy gas.

He had pronounced Petronas would not continue encouraging faith upon poor gas which disheartened efficiency, promoted marketplace dis! tortions as well as was unsustainable in a long term.

Petronas now provides subsidies of up to RM20 billion per year to a energy industry in a form of healthy gas rates during next marketplace prices.

The association disclosed now which it has paid RM108.5 billion in subsidies for TNB since 1997, including RM3.9 billion for a 3 quarters finished December 31, 2011.

Shamsul Azhar pronounced which a shortage of healthy gas will come to an end when a regassification terminal in Malacca comes online in Jul or August this year, which would concede alien liquefied healthy gas (LNG) to be introduced to peninsular Malaysia.

He stressed, however, which output from a plant will be during marketplace prices.

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