Indonesian Political, Business & Finance News

M`sia plans on exporting electricity to Sumatra

| Source: ANT
Putrajaya (ANTARA News/Bernama) -- The Ministry of Energy, Water and Communications is planning to export electricity power of up to 45 percent from the government`s reserves margin to Sumatra, Indonesia in the near future.

Its Minister Shaziman Abu Mansor said the move was in view of the high demand for electricity in the republic.

It will also help Malaysia to reduce its reserves margin which is still at a very high level.

"The ministry has met with Indonesia`s Perusahaan Listrik Negara (PLN), to discuss the matter and there will be another meeting Thursday," he told reporters after announcing the new electricity tariff rates at his office here Wednesday.

He said the ministry was planning to build an energy grid from Malaysia to Sumatra, Indonesia.

Shaziman also said that there were no plans to build any more power generation plants in Peninsular Malaysia considering that the country`s power reserves were still very high.

On another development, Shaziman said the Ministry of International Trade and Industry and the Economic Planning Unit will decide on which industrial sector qualified to receive the additional gas supply of 100 mmscfd for electricity power.

He said a total of 1,744 mmscfd gas was required in a day to generate the needed power supply but the amount agreed to be supplied by Petronas to Tenaga Nasional Bhd (TNB) was 1,350 mmscfd.

The gas to be supplied by Petronas to the energy sector will be reduced by 100 mmscfd and this will be rechannelled to the industrial sector.

"As we felt that it will help the industrial sector get energy supply at a lower cost, we agreed to let Petronas use 100 mmscfd gas for the industrial sector over the next two years beginning this March till 2011," he said.

However, this requirement for additional gas is expected to be reviewed in the future.

On the agreement between TNB and the independent power producers, Shaziman said the Cabinet had directed the Energy Commission to review the agreement.
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Tags: business
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