KUALA LUMPUR: The Energy Commission says that the country’s supplies of natural gas and coal for power generation are sufficient for now, despite cost increases stemming from the Middle East conflict.
Malaysia has been able to secure coal based on existing contracts and obtains its natural gas supplies primarily from domestic sources, rather than the Middle East, the commission’s chief executive Siti Safinah Salleh told a press conference yesterday.
She warned, however, that energy users are likely to see adjustments in tariff rates in the coming year, reflecting the rise in fuel prices due to the conflict.
“Coal prices have crept up as more countries switch to the fuel because of a global gas shortage, as well as increased shipping and insurance costs.
“We do have within our contracts some safeguards. However, we do have to brace ourselves for increasing costs on the fuel front,” she added.
Malaysia imports 100% of the coal it uses for power generation. A similar rise in natural gas prices has had a more limited impact, as just 20% of Malaysia’s supply is imported, mostly from Australia, according to Siti Safinah.
She said the conflict has also affected energy trading arrangements in the region.
“Malaysia expects little to no supply coming from neighbouring Thailand this year, after the country announced measures to protect its domestic reserves”. — Reuters
