Malaysian State Oil Company, Petronas is expected to pay up to RM164 Bln in gas subsidy up to 2022 for the power sector and up to 2018 for the non-power sector. The figure is for a relaxed market price.
If subsidy to continue however, as much as RM252 Billion will be subsidised by Petronas. The pricing formula was signed with all the gas buyers but suspended in 1997 for power sector due to economic recession and 2002 for non-power sector.
Beginning July 1, 2008, the prices of gas supplied by Petronas in Peninsular Malaysia will be revised. For the electricity sector, the price will be increased from RM6.40 per mmBtu (million British thermal units) to RM14.31 per mmBtu. The current market price is RM44.42 per mmBtu and we are going to sell it at RM14.31 per mmBtu. For that price, Petronas is still subsidising RM30.11 per mmBtu.
If subsidy to continue however, as much as RM252 Billion will be subsidised by Petronas. The pricing formula was signed with all the gas buyers but suspended in 1997 for power sector due to economic recession and 2002 for non-power sector.
Beginning July 1, 2008, the prices of gas supplied by Petronas in Peninsular Malaysia will be revised. For the electricity sector, the price will be increased from RM6.40 per mmBtu (million British thermal units) to RM14.31 per mmBtu. The current market price is RM44.42 per mmBtu and we are going to sell it at RM14.31 per mmBtu. For that price, Petronas is still subsidising RM30.11 per mmBtu.
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