Malaysia's Gas Shortage Threatens Power Prices
Rafizi Ramli, former economy minister of Malaysia, warns that declining gas production will drive up power prices in the country.
The issue is not just about Tenaga Nasional Bhd (TNB), but a pressing energy-security challenge for the nation, according to Rafizi.
Malaysia's power-generation system was designed decades ago when the country had an abundance of gas. However, domestic gas supply in Peninsular Malaysia is now insufficient, forcing the country to rely more on liquefied natural gas (LNG) imports.
Rafizi said that the impact of this shortage is already evident in gas pricing, with Tier 2 gas surging sharply from RM46 per million British thermal units (MMBtu) to between RM70 and RM80 per MMBtu, following a disruption around the Strait of Hormuz.