RM6 billions energy waste and LKY natural gas import bullshit

Posted On 22/09/2007

Filed under Food for thoughts

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Getting hint by Desi , I have done a google search on Petronas and its gas purchase, and guess what I found.


Malaysia’s Petronas to sell LNG to Japan’s Shikoku
reuter news date : Fri May 11, 2007

Malaysian state oil and gas firm Petronas [PETR.UL] will sell up to 420,000 tonnes of liquefied natural gas (LNG) a year to Japan’s Shikoku Electric Power Co. Inc (9507.T: Quote, Profile, Research), Petronas said on Friday.

The contract will be for 15 years from April 1, 2010, with an option to extend for another five years, the Malaysian company said, without giving details on prices.

However, recently, we see Bolehland minister give us contradict information about Insufficient of natural gas for local consumption.

Even better, a research paper from japan domain website , present by TNB fuel service Sdn Bhd Senior Manager, John Thaddeus. (PDF document generated in 17-Oct-2003)
(No, this is NOT a secret document )
Excerpt from the document

Malaysia has gas reserves totalling 87 TCF (Trillion Cubic Feet). Proven reserves total 58 TCF. West Malaysian reserves are 36.6 TCF, the East Malaysian states of Sarawak has 44.3 TCF and Sabah has 6.1TCF.
…..
About 61% of gas produced is exported as LNG, 3.5% exported via pipeline and 35.5% is for domestic utilisation.

And inside the report, there is one interesting line

there was a need for the Malaysian government to fix the price of gas in May 1997 at RM 6.40/MMBTU in view of electricity tariff regulation and shall remain fixed for as long as possible. Whilst gas has managed to displace fuel oil in the generation of fuel mix, coal provides the next challenge to gas. Coal is priced much lower than gas and the future plant-up program indicates a dramatic growth in coal fired generation plants.

Some reference that TNB has snipped from their site, show that Approximately 68.34 billion kWh of electricity is generated annually, with 63.48 billion kWh of electricity consumed per year .

That’s mean 8 billions kWh electricity is wasted.

In short

  • Malaysia still produce lots of natural gas, enough to burn all Bolehland politikus to dust and still with excess.
  • Malaysia natural gas reserved stand for TRILLIONS CUBIC FEET
  • 60% of Malaysia gas is exported. only 30% are consumed locally
  • Petronas will export 420,000 tones of natural gas to Japan every year, for 15 years.

(note : 1 ton = 1000kg)

Alas, with the hint of annual 8 billions kWh excess WASTAGE, there is one OBVIOUS answer : Independent power provide(IPP). When kWh price at RM0.85, is is about RM 6.8billiions wastage.

Perhaps TNB should just buy out all the IPP and shut some of them down, that will save us RM 6.8 billions energy TNB required to “subsidies excuses” for IPP.

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