Malaysia’s Energy Commission says natural gas and coal supplies secure despite rising costs
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Malaysia has been able to secure coal based on existing contracts, and gets its natural gas supplies from domestic sources.
PHOTO: REUTERS
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KUALA LUMPUR – Malaysia’s Energy Commission said on April 1 that the country’s supplies of natural gas and coal for power generation were sufficient for now, despite cost increases stemming from the Middle East conflict.
Malaysia has been able to secure coal based on existing contracts, and obtains its natural gas supplies primarily from domestic sources, rather than the Middle East, the commission’s chief executive Siti Safinah Salleh told a press conference.
She warned, however, that energy users are likely to see adjustments in tariff rates in the coming year, reflecting the rise in fuel prices due to the conflict.
Coal prices have crept up as more countries switch to the fuel because of a global gas shortage, as well as increased shipping and insurance costs, Ms Siti Safinah said.
“We do have within our contracts some safeguards. However, we do have to brace ourselves for increasing costs on the fuel front,” she said, adding that Malaysia imports all of the coal it uses for power generation.
A similar rise in natural gas prices has had a more limited impact, as just 20 per cent of Malaysia’s supply is imported, mostly from Australia, she said.
Ms Siti Safinah said the war in Iran has also affected energy trading arrangements in the region.
Malaysia expects little to no supply coming from neighbouring Thailand in 2026, after the country announced measures to protect its domestic reserves, she said. REUTERS
