The Star – Plan to Lower Gas and Power Tariffs

As I have commented in my previous entry, you can feel the  Hand of Jabba behind these announcements.

The Star Revise Gas Prices 2008-01-31

I’ve scanned the article from the Star. You can subscribe to an online version of the paper at the Bluehyppo site, follow links to e-browse.

Gas Price Review

Taken from The Star, Dateline 2008-01-15:

The (Malaysian) Cabinet has agreed for the price of gas sold to the energy sector to be reviewed earlier than the scheduled revision in June.

The Star - Gas Price Review

But, during the last gas price review, when the price of gas went supposed to go up, nothing happened. Must be that laissez faire mechanism called political economics (my grouse for the the day).

You can subscribe to an online version of the paper at the Bluehyppo site, follow links to e-browse.

Thoughts on the Price of Petrol

As of today (11th Dec, 2008), the price of petrol in Malaysia is RM1.90/liter. Even though this seems good in the face of things, I can’t help but wonder on some topics:

• Did you notice that the price of natural gas hasn’t changed? If you are going to follow market forces in pricing petrol, why not gas? Is it because gas consumers has more political clout and more to lose if the current low market price for gas goes up? Or is it because the average man in his Produa doesn’t know about it.

• For comparison, the EIA site has the price of natural gas as USD $5.686 per MMBtu for January 2009. From Gas Malaysia’s tariff site, the cost of gas ranges from RM19.18/mmBtu to RM28.29/mmBtu. That’s $5.38 to $7.93, converted.

• The low petrol price means that the people’s focus moves away from  improvement of public conveniences, and back towards getting to work in the relative comfort of private vehicles. I believe that engineers, esp the Institution of Engineers, could have done more faster to improve the lot of the commuter, and recruit more converts to communal travel.

• Low petrol prices means low crude oil prices, which puts my job in jeopardy. But hey, nothing I can do about it except be more diligent in seeking worthwhile jobs.

Malaysia Gas Prices – Compare against US Prices

Hah, I found an almost mindless way to compare US pump prices to Malaysian pump prices.

1. Go to gasbuddy.com to get a US pump price. For example, on the 28th of September, 2008, the average price was 2.624/gallon. BTW, the price one month ago was 3.619/gallon.
2. Go to google.com, and type “convert 2.624 dollars per gallon to ringgit per liter,” or whatever the US gallon price is. In this case, the price is equivalent to about RM2.48/liter. This should work for any currency and volume, ex 7,434 Rupiah/liter. Haven’t tried out kolah and ‘tin minyak tanah’ yet.
3. Compare to the Malaysian gas price of RM2.30/liter.

I guess someone will create a Java / AJAX script to link all this up, and alow me to make it an applet on my page?

Gas Prices – The Continuing Saga

News on the gas prices. Extracting from The Star:

From July 1, industries using more than two million cu ft of gas a day will enjoy a 70% discount on the market price of gas, now at RM79 per million British thermal unit (mmmbtu).

Under this new structure, industries using more than two million cu ft of gas a day will enjoy the new price of RM23.88 per mmmbtu, down from RM32.56 per mmmbtu, which was to have been effective this month.

Those using less than two million cu ft a day, including 8,887 households that have gas piped directly to their homes, will enjoy a price of RM22.06 per mmmbtu beginning Aug.

 I wonder if the Independent Power Producers (IPPs) had anything to do with this?

Barracuda Shoal

Natural Gas Price Increase on Hold

A while back, I shared the news that Malaysia Gas would raise the price of natural gas, effective July 1st, 2008

On July 1st, 2008, the government decided not to increase gas prices. Taking the following from The Star,

PETALING JAYA (July 2nd, 208): The implementation of a new gas price scheduled for Tuesday has been deferred to a later date, the Economic Planning Unit of the Prime Minister’s Department said in a statement.

The statement referred to the Government’s earlier decision on June 4 in relation to the restructuring of petrol, diesel and gas subsidies.

Under the restructuring exercise, gas price in Peninsular Malaysia was to be increased effective Tuesday.

 Malaysians get a reprieve.

Malaysia – Cost of Natural Gas Price Increase

What’s been obvious to consumers in Malaysia is the ‘release’ of petrol (bahan bakar motor as they say in Indonesia), causing the pump cost to rise to RM2.70/l from RM1.92/l.

What I haven’t seen so much of is comments on the rise of gas prices. Here’s a summary:

• Power producers – RM14.31/MMBTU from RM6.40/MMBTU (120% increase)
• Industrial users, low consumers – RM24.54 from 9.40 (160%)
• Industrial users, high consumers – RM32.56 from 11.32 (190%)

Natural gas is used as a raw material for many modern products. So, we can be sure that all chemical industries will hit the rakyat with a price increase which is independent for rising fuel costs.

I wonder how this will effect the Kawasan Industri Petroliam PETRONAS (KIPP) out there in Kerteh? Most of the plants there depend on gas feedstock, for example Petlin, Optimal,  Ethylene Malaysia, and the various companies listed below (I would link to the PETRONAS page, but it’s one of those funky frame pages). I guess a round of repricing, efficiency, retreating to core businesses, and mergers is in order.

 

Plant:	Ethylene
Capacity:	400,000 TPA
Company:	Ethylene Malaysia Sdn Bhd
Partners:	PETRONAS, Idemitsu Petrochemicals Co Ltd, BP Chemicals
Onstream:	September 1995
.
Plant:	Polyethylene
Capacity:	200,000 TPA HDPE/LLDPE, 50,000 TPA Pipe compounding
Company:	Polyethylene Malaysia Sdn Bhd
Partners:	PETRONAS, BP Chemicals
Onstream:	May 1995
.
Plant:	Vinyl Chloride Monomer
Capacity:	400,000 TPA
Company:	Vinyl Chloride (M) Sdn Bhd
Partners:	PETRONAS
Onstream:	November 2000
.
Plant:	Polyvinyl Chloride (PVC)
Capacity:	150,000 TPA
Company:	Vinyl Chloride (M) Sdn Bhd
Partners:	PETRONAS
Onstream:	September 2000
.
Plant:	Ammonia / Syngas
Capacity:	450,000 TPA Ammonia, 325,000 TPA Syngas
Company:	PETRONAS Ammonia Sdn Bhd
Partners:	PETRONAS
Onstream:	December 2000
.
Plant:	Acetid Acid
Capacity:	400,000 TPA
Company:	BP PETRONAS Acetyls Sdn Bhd
Partners:	BP Amoco, PETRONAS
Onstream:	November 2000
.
Plant:	Aromatics
Capacity:	420,000 TPA Paraxylene, 145,000 TPA Benzene
Company:	Aromatics Malaysia Sdn Bhd
Partners:	PETRONAS, MJPX Co Ltd
Onstream:	July 2000
.
Plant:	Olefins (Second Cracker )
Capacity:	600,000 TPA Ethylene, 95,000 TPA Propylene
Company:	Optimal Olefins (M) Sdn Bhd
Partners:	PETRONAS, The Dow Chemical Company, Sasol Polymers Investments (Pty) Ltd
Onstream:	January 2002
.
Plant:	Ethylene Oxide, Ethylene Glycol
Capacity:	140,000 TPA Ethylene Oxide, 385,000 TPA Ethylene Glycols
Company:	Optimal Glycols (M) Sdn Bhd
Partners:	PETRONAS, The Dow Chemical Company
Onstream:	February 2002
.
Plant:	Ethylene Derivatives
Capacity:	30,000 TPA Ethoxylates, 75,000 TPA Ethanolamines, 60,000 TPA Glycol Ethers,140,000 TPA Butanol, 50,000 Butyl Acetate
Company:	Optimal Chemicals (M) Sdn Bhd
Partners:	PETRONAS, The Dow Chemical Company
Onstream:	April 2002
.
Plant:	Low Density Polyethylene
Capacity:	255,000 TPA LDPE
Company:	Petlin (M) Sdn Bhd
Partners:	PETRONAS, Sasol Polymers of South Africa, Sabic Polyethylenes B.V.
Onstream:	February 2002
.