Petronas has failed to protect the interest of the nation when it allowed the supply of 3. 03 million tones of Liquefied Natural Gas (LNG) a year to Shanghai Gas Terminal for twenty five years effective from 2009. There is not enough gas in the country and there is no reason for Petronas to allow the shipment of our gas out of the country which may also result in tens of billions of ringgit in Foreign Direct Investment (FDI). This will in the future cost our gas to be more expensive in local market. The country has badly in need of cheaper gas and has to import about 19% of the country’s gas from Indonesia.
Petronas should be held for all losses the country will incur due to gas shortage in industries that may need gas to operate. On top of that Petronas had betrayed the confidence of the people in its management of the country’s most precious resources as its action has highly been against national interest. It is a terrible waste of our money when Petronas spent RM11.5 billion to build the Penisular Gas Utility System (GPU) pipeline to supply gas throughout the country when there is no gas flowing through the PGU pipeline.
We all know that the National Gas Policy was supposed to reduce gas supplies to the power sector that consumes 61% of gas supplies to 40%. However there has been no effort made to reduce dependence by the Independent Power Producers (IPP) which consumes 35% of our much needed gas supplies. The Malaysian government has made 27 million Malaysians looked like stupid people when gas was only used to serve the few IPPs to allow them generate and enjoy billions of ringgit of profits at the expense of Malaysians.
Petronas should be held for all losses the country will incur due to gas shortage in industries that may need gas to operate. On top of that Petronas had betrayed the confidence of the people in its management of the country’s most precious resources as its action has highly been against national interest. It is a terrible waste of our money when Petronas spent RM11.5 billion to build the Penisular Gas Utility System (GPU) pipeline to supply gas throughout the country when there is no gas flowing through the PGU pipeline.
We all know that the National Gas Policy was supposed to reduce gas supplies to the power sector that consumes 61% of gas supplies to 40%. However there has been no effort made to reduce dependence by the Independent Power Producers (IPP) which consumes 35% of our much needed gas supplies. The Malaysian government has made 27 million Malaysians looked like stupid people when gas was only used to serve the few IPPs to allow them generate and enjoy billions of ringgit of profits at the expense of Malaysians.
2 comments:
I think the view is a little limiting. I would imagine that PETRONAS is keenly aware about the global nature of the oil & gas industry, and it is doing all it can to develop its international market.
The nature of the LNG business is long term, and a lot is based on reputation as a reliable supplier. In that sense, I reckon PETRONAS is building its growth capacity (and by extension, the nation's coffers) with a very long term perspective. How can a learned person like you criticise them for that? To accuse them as failing to protect the interest of the nation is a cheap shot.
Please also enlighten me on the following:
"There is not enough gas in the country and there is no reason for Petronas to allow the shipment of our gas out of the country which may also result in tens of billions of ringgit in Foreign Direct Investment (FDI)."
The country is badly in need of cheaper gas? Maybe that's the problem with the nation - we are so used to the whole subsidy mentality and we con ourselves into thinking we are so competitive. In reality, PETRONAS and the government are effectively buttressing everyone's profit and loss account through huge subsidies every year. The main beneficiaries are the manufacturers and industries, and the rakyat is footing the bill through taxes.
I think it's hilarious to even suggest that "Petronas should be held for all losses the country will incur due to gas shortage in industries that may need gas to operate."
Are you saying that the massive subsidies coming straight from the company's profit is not enough? Again, I think it's a wrong mentality.
You also wrote:
"Petronas had betrayed the confidence of the people in its management of the country’s most precious resources as its action has highly been against national interest."
What exactly do you mean? What is the basis of this statement? I hope you can elaborate more on this. Otherwise it's just a shallow statement and empty posturing by a politician who is trying to gain political mileage.
By the way, re: National Gas Policy and the whole IPP brouhaha
Those in the Parliament should be thinking about this and resolving this long standing issue. Shouldn't it be part of the Budget debate or something? Shouldn't the MPs (both Barisan AND Pakatan Rakyat) be doing their jobs?
We had been told that our gas and oil resources are limited. There is no reasaon that we should export our gas when the country is now looking for these sources somewhere. I also thank you for your criticisms and comment and your opinion may differ from me. What will happen if our resources will one day dry up? Why not take steps to protect them now?
Sabah and Sarawak had long been deprived of their oil and gas and we should not allow those who were trustees not to keep in mind our concern. Subsidy mentality in actual fact went to the few UMNO and PBB people. Many in UMNO and PBB also were deprived.
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