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

By Yow Hong Chieh

Mar 05, 2012

Tenaga needs to find another source to assistance pay for a price difference, pronounced Petronas. File pic

KUALA LUMPUR, Mar 5 Petronas currently reiterated a unwillingness to go upon selling subsidised gas to inhabitant energy association Tenaga Nasional Bhd (TNB) for a generation of electricity.

The state oil firm's boss as well as arch executive, Datuk Shamsul Azhar Abbas, pronounced Petronas's suggest to supply TNB with gas below market rates was a "one-off" event as well as which a government should assistance pay for any destiny subsidies upon gas.

"Never have you mentioned in a past which that's going to be a successive kind of handout to TNB," he told reporters during Petronas domicile here today.

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

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

"We sat down with 3 ministers 3 weeks ago as well as we've basically proposed a examination of a regulation which takes in to account made during home sensitivities.

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

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

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

He ha d pronounced Petronas would not go upon encouraging faith upon poor gas which discouraged efficiency, promoted market distortions as well as was unsustainable in a long term.

Petronas currently provides subsidies of up to RM20 billion per year to a energy industry in a form of healthy gas rates during below market prices.

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

Shamsul Azhar pronounced which a necessity of healthy gas will come to an end when a regassification terminal 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 output from a plant will be during market prices.

Apart from Malacca, Petronas is office 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.