Malaysia's energy giant sees 8.2% rise in power demand

Malaysia's energy giant sees 8.2% rise in power demand

KUALA LUMPUR (AFP): Malaysia utility giant Tenaga Nasional Bhd on Tuesday predicted a strong 8.2 percent rise in power demand in 2002 on the back of an estimated six percent economic growth for the period.

Tenaga described its outlook for its whole financial year ending August 31, 2001 as "satisfactory."

The utility giant earlier announced its third quarter results. It posted a slightly higher net profit of 1.799 billion ringgit (US$473 million) in May 2001 compared to 1.318 billion previously.

The Malaysian Institute of Economic Research in July reduced its gross domestic product growth (GDP) forecast to 2.2 percent from the four percent it predicted in April for 2001. The institute had projected five percent last December.

The government in March revised downwards its economic growth forecast this year to between five and six percent, from seven percent previously.

But most analysts predict the economy will grow by less than half the 8.5 percent rate of last year.

Tenaga's president and chief executive officer Fuad Jaffar told reporters that Tenaga has forcast 6.5 percent power demand growth and to-date it had achieved 6.1 percent growth.

Peak demand in July stood at 9,973 megawatts compared to 9,712 megawatts in May last year, he said.

Fuad said Malaysia's electricity reserve margin stood at about 26 percent.

Tenaga's chairman Jamaludin Jarjis said at the moment the gas supply contract with Petroliam Nasional Bhd (Petronas) "will remain at the existing price (of 6.40 ringgit0 per MMBTU)."

Tenaga's gas contract with Petronas ends in December.

Jamaludin also said it would let the government decide how much stake it should take in the Bakun dam project in the eastern Sarawak state on Borneo island.

"As far as equity is concerned, the government should take the lead as it is national project," he added.