No Petronas subsidy for TNB's 'inefficiencies'
Published: Dec 2, 2011 5:26 AM | Updated: Dec 2, 2011 6:01 AM
National gas giant Petronas today questioned Tenaga Nasional Berhad's (TNB) huge additional cost for generating electricity, vowing not to subsidise the negative results arising from inefficiencies.
National gas giant Petronas today questioned Tenaga Nasional Berhad's (TNB) huge additional cost for generating electricity, vowing not to subsidise the negative results arising from inefficiencies.
"We find a lot of inefficiencies in TNB. TNB must verify the figures. We will not provide subsidies for inefficiencies," said Petronas president and chief executive Shamsul Azhar Abbas told today's Malay daily, Berita Harian.
According to the report, Shamsul had cast doubts on TNB's additional cost of RM3 billion for generating power through alternative fuels caused by a natural gas shortage in the country.
He said that TNB had failed to anticipate its future fuel requirements and take the necessary action.
"Little effort has been taken by TNB even though they were aware that the local natural gas supply was insufficient," he was quoted as saying.
Billions being pumped in
He added that Petronas allocates between RM18 billion to RM20 billion in subsidies to TNB annually.
The shortage came about when Petronas's natural gas facility was shut down for maintenance, forcing TNB to purchase alternative fuels at five times the price of natural gas.
The report adds that TNB in a statement yesterday had said the government had written to it outlining a mechanism to help the power generating firm by footing part of the additional cost.
Shamsul said that Petronas is working on developing a few liquefied natural gas (LNG) plants in Malacca, Johor and Sarawak to ease such situations in the future.
"We find a lot of inefficiencies in TNB. TNB must verify the figures. We will not provide subsidies for inefficiencies," said Petronas president and chief executive Shamsul Azhar Abbas told today's Malay daily, Berita Harian.
According to the report, Shamsul had cast doubts on TNB's additional cost of RM3 billion for generating power through alternative fuels caused by a natural gas shortage in the country.
He said that TNB had failed to anticipate its future fuel requirements and take the necessary action."Little effort has been taken by TNB even though they were aware that the local natural gas supply was insufficient," he was quoted as saying.
Billions being pumped in
He added that Petronas allocates between RM18 billion to RM20 billion in subsidies to TNB annually.
The shortage came about when Petronas's natural gas facility was shut down for maintenance, forcing TNB to purchase alternative fuels at five times the price of natural gas.
The report adds that TNB in a statement yesterday had said the government had written to it outlining a mechanism to help the power generating firm by footing part of the additional cost.
Shamsul said that Petronas is working on developing a few liquefied natural gas (LNG) plants in Malacca, Johor and Sarawak to ease such situations in the future.
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