IDEAS: Gas price normalisation important to drive sector’s growth


Dateline 2018-11-08, The Edge:

The process of normalising gas prices between the domestic market and global prices is a critical step towards driving Malaysia’s gas production activities, said IDEAS senior fellow Prof Renato Lima de Oliveira.

The normalisation, which is currently ongoing via the gas cost pass through (GCPT) mechanism, will make domestic sales profitable, thus providing an incentive for oil and gas (O&G) companies to further invest in Malaysia’s gas fields.

“There has been progress towards unifying the selling price of gas for electricity generation for industrial use here, with international prices.

“You need that convergence in order to be profitable to exploit fields here. That is an important mechanism to increase the amount of natural gas [used in the country],” said Oliveira at a forum on Malaysia’s energy policy challenges today.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: