Thanks to 1MDB, Petronas now enjoys huge reserves, says Najib

December 25, 2018

There you go.

Dateline 2018-11-06, FMT:

Days after two former ministers blamed 1MDB for Barisan Nasional’s defeat in the May 9 polls, Najib Razak has defended the state investment arm and says it indirectly helped Petronas increase its reserves.

In a Facebook post, the former prime minister said that for 15 years up to 2012, the national petroleum company was forced to subsidise gas that it supplied to independent power producers (IPP).

This led to Petronas incurring losses of over RM10 billion every year.


From Bernama – Penjanabebas Says IPPs Don’t Benefit From Gas Subsidy

August 10, 2010

Oh, I can see this news article causing a look of disbelief on people’s faces. Maybe I should get the IEM to give a talk on the topic, so I can capture peoples’ expressions on my trusty Canon A-1.

Dateline 2010-07-21, taken from Bernama:

The Association of Independent Power Producers in Malaysia (Penjanabebas) on Wednesday said it is unfair to portray its members as beneficiaries of gas subsidy.

It said the cost of gas as a fuel to generate electricity is a component that the IPP industry does not derive any financial benefit from but instead, the savings from gas subsidy is passed on to consumers through the tariffs.

“Under the Malaysian IPP model – in line with the international norm in power purchase agreements – gas costs operate under a “pass” through” mechanism, whereby all gas supplies are provided directly to gas-fired generators at cost determined by the government.

From The Star – IPP & Gas Prices

January 22, 2009

Those of you who are old enough to remember the original Sony Walkman or SimSci’s ProII would remember when starting up an Independent Power Producer (IPP) was the equivalent of being on top of a Ponzi scheme.

Seems like 2009 is the year history repeats itself. Here’s the article deadline 2009-01-15:

This is because payments to the IPP’s make up 45% of  [Tenaga National Berhad’s] cost and fuel cost 15% … TNB has paid IPPs over RM9bil in the last financial year.

I can almost swear Jabba thought this one up.

The Star - IPP & Gas

The Star - IPP & Gas

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.