KL mulls coal purchases, gas and oil collaboration
KL mulls coal purchases, gas and oil collaboration
KUALA LUMPUR (AFP): Prime Minister Mahathir Mohamad on Monday
expressed Malaysia's desire to work with Indonesia on oil and gas
exploration and to buy more coal to reduce the country's
dependence on gas.
"We have invested in plantations. But we are willing to
collaborate in other areas, like (Malaysia's state energy
company) Petronas to work with (Indonesian counterpart) Pertamina
in oil and gas concession areas.
"We will look at Indonesia as another good place to invest in
collaboration with Indonesia," Malaysian Foreign Minister Syed
Hamid Albar told a press conference.
Earlier Mahathir and visiting Indonesia's President Megawati
Soekarnoputri held an hour-long meeting.
Megawati mentioned that if they have to work together and if
they have to raise funds, it will be a viable type of project
where they will raise funds with the international financial
institutions, Syed Hamid said.
"She did not come for aid," he added.
"Malaysian investors are still keen to invest in Indonesia,"
the foreign minister quoted Mahathir as telling the Indonesian
president.
Syed Hamid also said that Mahathir told Megawati that Malaysia
was keen to buy coal from Indonesia as part of its strategy to
reduce its dependency on gas.
Mahathir told Megawati that Kuala Lumpur was "very happy" with
her assurance that the political situation was stable and back to
normal, he said.
Malaysia utilities giant Tenaga Nasional Bhd has said its plan
to acquire a coal mine in Indonesia's Kalimantan on Borneo island
is to protect against a sudden rise in coal prices.
Tenaga Chairman Jamaludin Jarjis, quoted by Bernama news
agency Sunday, said that under the firm's new policy of
diversifying into coal, it would be irresponsible not to ensure a
steady supply of the fuel.
Tenaga has proposed to buy the Indonesian coal mine, owned by
Dynamic Acres Sdn Bhd, for US$59.5 million.
Tenaga currently depends on gas for its power generation.
However, it faces higher gas costs as Malaysian national oil
company Petroliam Nasional Bhd (Petronas) has requested a price
increase.