Petronas says RM200b ‘forgone revenue’ from selling natural gas cheaper in Malaysia


Dateline 2017-04-25, The Edge:

Petroliam Nasional Bhd (Petronas) has forgone more than RM200 billion in revenue from selling natural gas in Malaysia at rates lower than global prices since the country regulated prices of the fuel after the 1997/1998 Asian financial crisis.

The Edge Malaysia business and investment weekly (Edge Weekly) in its latest March 27 to April 2 issue, quoted Petronas president and group chief executive officer Datuk Wan Zulkiflee Wan Ariffin as saying despite Malaysia revising the price of natural gas upward every six months, the local rate was still below the international price.

“I think the forgone revenue since we started is more than RM200 billion because we have not been able to sell natural gas at market value. In the past, we made investments just to ensure security of supply. But moving forward, there is this perennial issue of non-market pricing.

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