M'SIA PLANS ON EXPORTING ELECTRICITY TO SUMATERA

PUTRAJAYA, Feb 12 (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 Sumatera, 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
Sumatera, 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 electicity 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.


-- BERNAMA