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Sarawak Energy, Shell MDS To Explore Hydrogen Production In Sarawak

ENERGY - Malaysia
January 2019

The Sarawak state-owned energy company, Sarawak Energy Bhd (Sarawak Energy) has signed a Memorandum of Understanding (MoU) with Shell MDS (Malaysia) Sdn Bhd (Shell MDS) to explore opportunities in lower-cost hydrogen production technology via electrolysis. The MoU includes a joint study by the two parties and knowledge exchange on hydrogen production technology, promoting education and drawing up best practices in the area. It also includes exploring opportunities for green certification in hydrogen production.

This MoU is a follow-up to the pilot hydrogen production plant and refuelling station project by Sarawak Energy which is scheduled to be ready in time for a test run of three hydrogen-powered buses by the first quarter of 2019. 

The pilot facility, the first such plant in South East Asia, lays the foundation for research on the commercial viability of a hydrogen economy for Sarawak through the production, delivery, storage and utilisation of this ‘fuel of the future’.

Sarawak’s renewable hydropower stands at 75% of the state’s power generation mix currently. Promoting renewable hydropower is in line with the state’s aspiration to use less carbon-based energy, given that producing hydrogen from the grid will be less fossil-fuel intensive.

(Sources: The New Straits Times; The Borneo Post; Sarawak Energy)

SEDA Malaysia Announces Multiple Initiatives For Renewable Energy Promotion

ENERGY - Malaysia
November 2018

The Sustainable Energy Development Authority (SEDA) of Malaysia  signed three memorandums of understanding (MoU) at the 9th International Greentech & Eco Products Exhibition & Conference Malaysia (IGEM) 2018  to advance the renewable energy and energy efficiency agenda. The Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC) outlined the intention of these MoUs :

  1. MoU with Asian Development Bank (ADB): Under the MOU, ADB will provide three energy experts for a comprehensive peer-review of Malaysia’s Renewable Energy Transition Roadmap (RETR) 2035. ADB will also disseminate the key highlights of the roadmap through briefing sessions and workshops once the RETR is completed.
  2. MoU with Japanese Business Alliance for Smart Energy Worldwide (JASE-W): The MOU will enable SEDA and JASE-W to exchange information on energy efficiency programme including the energy efficiency knowledge, services and technologies on Zero Energy Building (ZEB). They will also drive dissemination and promotion of ZEB concept and opportunities in Malaysia.
  3. MoU with APX Inc: Under the MOU, SEDA and APX Inc will recognize SEDA as an authorized verifier or a Qualified Reporting Entity (QRE) for the Tradable Instrument for Global Renewables (TIGRs) Registry, making it the first entity to be appointed in Malaysia as authorised verifier. The TIGRs Registry operated by APX Inc will provide a platform for trading of renewable energy certificate (REC).

During the event, SEDA also launched Malaysia's first-of-its-kind All Risks Solar PV insurance. The innovative insurance product was by Allianz Malaysia Bhd via Anora Agency Sdn Bhd in collaboration with the Malaysian Photovoltaic Industry Association (MPIA). Under this protection, the policy holders will not have to bear any costs for repairs or the replacement of parts (including components), they will also be compensated for loss of income or savings should their solar PV system experience down time due to damage or theft up to 6 months. This product aims to serve solar PV owners such as the recipients of the feed-in tariff (FiT) scheme implemented by SEDA.

SEDA  also launched the first national solar PV monitoring system (PVMS), which acts as an information platform for solar PV in the country. SEDA has been actively developing this platform since 2015.This PVMS will generate leads to performance database which monitors selected grid-connected solar PV systems for performance and reliability. The performance and reliability of the key components of the solar PV systems such as PV modules and inverters will be monitored. The PVMS also acts as an information platform for solar PV in the country. The monitoring system is available for subscription. Initially, 120 grid-connected solar PV systems (up to 1MW in capacity) throughout Malaysia are being monitored on a realtime basis. SEDA will continue to make more grid connected solar PV systems come onstream in the future. The PVMS is funded by the Malaysian Electricity Supply Industries Trust Account (MESITA) under MESTECC. 

(Sources: The Edge Markets; Sustainable Energy Development Authority, Malaysia)

Malaysia's Ambitious New Goal Of 20% Clean Energy Generation By 2030

ENERGY - Malaysia
October 2018

Malaysia is looking to set an aggressive new clean energy target by 2030, which entails increasing the share of clean energy in its energy mix to 20%. At present, coal and natural gas account for roughly 50:50 ratio to the national power generation mix, while only 1% to 2% is generated by hydro and solar.

The Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC) will roll out an initiative to reform Malaysia’s electricity supply industry known as Malaysia Electricity Supply Industry 2.0 (MESI 2.0).  MESI 2.0 includes transformation programs such as generating renewable energy and green energy, developing the grid of the future and enhancing customer experience initiatives.

Through MESI 2.0, the Malaysian government is looking to increase the industry's efficiency, future-proof the energy industry’s structure, regulations and key processes, and democratise and decentralize the electricity supply industry. The transformational program which will be undertaken by the Malaysia Program Officer for Power Electricity Reform (MyPower), an agency under MESTECC.

Some sources in the country have opinioned that the government is likely to introduce large-scale solar systems on a contract basis and under a quota system, in order to achieve the new target by 2030.

The government has indicated that it will help green technology and renewable energy players to have access to cheaper funding as financing cost is not cheap for such initiatives. Additionally, the Ministry has given its assurance that the electricity tariff in the country is unlikely to be raised.

(Sources: The Edge Markets; The Sun Daily; The New Straits Times; Eco-Business)

Aramco To Start Shipping First Crude Oil To Malaysia JV Refinery From October

ENERGY - Malaysia
September 2018

The national oil company of Saudi Arabia, Saudi Aramco (Aramco) plans to start delivering crude oil to the Refinery and Petrochemical Integrated Development (RAPID) in October. RAPID is a joint-refinery project between Saudi Aramco and the Malaysian national oil company, Petroliam Nasional Berhad (PETRONAS), in Malaysia’s southern state of Johor. Through this collaboration, Saudi Aramco will supply 50 percent of the refinery’s crude feedstock requirements with the option of increasing to 70 percent. Meanwhile natural gas, power and other utilities will be supplied by PETRONAS and its affiliates. The Parties will share in the rights to offtake the production of the Joint Ventures on an equal basis.

The USD 27 billion complex comprises a refinery with a processing capacity of 300,000 barrels of crude per day and a petrochemical complex with a capacity of 7.7 million tonnes a year is one of four new mega-refineries in Asia. These mega-refineries will increase Asia's crude demand while adding to fuel output in the region. 

According to a Singapore-based analyst, Nevyn Nah, RAPID is expected to put Malaysia in a competitive position, not only for meeting its own targets for switching to producing Euro V fuel, but also by putting it ahead of the International Maritime Organisation (IMO) 2020 ruling by increasing its net length in diesel. IMO rules will cap ships’ sulfur emissions at 0.5 percent of fuel content in 2020, from the current 3.5 per cent. Shippers have several ways to comply – including investing in costly “scrubbers” (systems that remove some particulates and gases from the burning of marine fuel) to reduce pollution while allowing them to keep using high-sulphur fuel oil, or shifting from the roughly 4 million barrels per day of highly polluting bunker fuel they burn to the less polluting but more expensive low-sulphur gasoil.

Located on a 6,239 -acre site about 400km south of the capital city of Kuala Lumpur, the RAPID project forms part of Malaysia’s ambitious 22,000-acre Pengerang Integrated Complex (PIC). In addition to the refinery, cracker and the downstream petrochemical facilities comprising the RAPID project, the PIC also includes the development of associated facilities such as a co-generation plant, an LNG re-gasification terminal, a raw water supply project, a deep water terminal, as well as centralized and shared utility facilities.  

(Sources : Reuters, The Star, Saudi Aramco website)

Malaysian Government To Introduce Law On Energy Efficiency

ENERGY - Malaysia
August 2018

According to Malaysia's Minister for Energy, Green Technology, Science and Climate Change, Yeo Bee Yin,  the government will introduce an Energy Efficiency Bill in  2019 to assist Malaysia in cutting carbon emissions by 45% by 2030 in compliance with the Paris climate accord.

The Paris Accords, with 195 member countries (following withdrawal by the USA last year) have a long-term goal to keep the increase in global average temperature to well below 2 °C above pre-industrial levels; and to limit the increase to 1.5 °C, since this would substantially reduce the risks and effects of climate change. 

The new Malaysian government will implement the previous government's pledge to reduce carbon emissions. In the year 2015, Malaysia’s carbon emission was down by 33% compared to 2005. 

Minister Yeo said that being a 'green country' is not just  a matter of saving the world, but it's necessary for economic progress. Since, Malaysia is a relatively small emitter of emissions compared to the developed world, she said that Malaysia would not just reduce emissions but also build the green industry, creating jobs and experts, so as to meet global demand. 

(Source: The New Straits Times; Malay Mail)

Natural Gas Price Hike In Malaysia From July 1, 2018

ENERGY - Malaysia
July 2018

Gas Malaysia Bhd (Gas Malaysia) has announced the revision of natural gas tariff from MYR 30.90/MMBtu (USD 7.64/MMBtu) to MYR 31.92/MMBtu (USD 7.90/MMBtu) for the non-power sector in Peninsular Malaysia effective from July 1, 2018, to December 31, 2018. The revision was approved by the Malaysian government through an announcement by the Energy Commission via a letter dated June 12, 2018.

A framework to set the base tariff for a regulatory period of three years from January 2017 known as the Incentive Based Regulation (IBR) allows changes in the gas costs to be passed through via a Gas Cost Pass Through (GCPT) mechanism every six months. Under the GCPT mechanism, a surcharge of RM0.77/MMBtu will apply to all tariff categories due to the higher actual gas costs against the reference gas costs in the Base Tariff in this period. The tariff revision would translate to an average effective tariff of MYR 32.69/MMBtu (USD 8.09/MMBtu).

The move is also supported by the Malaysian Gas Association (MGA) which said that this would safeguard the country's energy security through market liberalisation efforts, including deregulation of the gas price to achieve a market-based pricing.

The last tariff revision for natural gas in Peninsular Malaysia occured in November 2017 for the period from January 1 to June 30, 2018.

Gas Malaysia sells, markets and distributes natural gas as well as constructs, operates and maintains the Natural Gas Distribution System within Peninsular Malaysia. 

(Sources: New Straits Times; The Edge Markets; Malaysian Digest; The Star)

TNB To Invest RM 2.7 Billion For ‘Grid Of The Future’ Technologies

ENERGY - Malaysia
June 2018

Tenaga Nasional Berhad (TNB), the largest publicly-listed power company in South East Asia and the largest electric utility company in Peninsular Malaysia, is allocating a total of MYR 2.7 billion (USD 670 million) to acquire the “Grid of the Future’ technologies to improve its grid’s reliability and efficiency. The amount is part of the RM 18.8 billion (USD 4.7 billion) capital investment in transmission and distribution grid secured under the second Regulatory Period (2018 – 2020).

The company is hoping to improve its performance and reliability as well as to continue to invest in digitization and automation, including the scheduled deployment of 340,000 smart meters in Melaka and subsequent deployment of an additional 1.2 million smart meters in Klang Valley. It has also decommissioned inefficient ageing plants and replaced them with newer plants utilizing the current gold standard in coal-fired power plants, the ultra-supercritical technology that is capable of enhancing the efficiency of coal-fired power plants by 40% compared to the 36% efficiency from conventional pulverized coal firing system.

TNB’s third power plant utilizing the ultra-supercritical technology, Jimah East Power Plant will begin its operation in 2019. TNB owns 70% of the power plant, which is estimated to generate 2,000 MW of electricity. Following the development, TNB’s share of Malaysia’s generation capacity is expected to increase from 51.8% to 53.2%.  

(Sources: The Star; TNB)

Gas Malaysia To Spend USD 48 Million On Distribution Network

ENERGY - Malaysia
May 2018

Gas Malaysia Berhad (GMB), a joint venture between MMC-Shapadu Holdings, Tokyo Gas-Mitsui Holdings and Petronas Gas Berhad is the sole provider of piped natural gas and liquefied petroleum gas distribution to the non-energy production sectors in Malaysia. They have allocated RM180 million (USD 48 million) in capital expenditure for 2018-2019 that will mainly be spent on broadening their distribution network. This is in line with their three-year allocation of RM500 million (USD 126 million), including RM170 (USD 43 million) spent last year.

Consumption of piped natural gas in Malaysia has risen steadily from roughly 118 million MMBtu to 159 million MMBtu from 2010-2015 and the consumption of Liquefied Petroleum Gas (LPG) from 229-299 million MMBtu in the same period. The pipeline networks for both natural gas and liquefied petroleum gas is currently concentrated in the more developed areas in Malaysia which are the west coast and central east coast of Peninsular Malaysia. Furthermore, over 99% of natural gas consumption is from industrial use, while 83% of LPG is consumed by industrial use, and 17% residential use.

The expansion of GMB’s distribution network aims to increase revenue and piped natural and LPG consumption in Malaysia by being available to more industrial and residential areas within the country. GMB is also in discussion with the Malaysian Energy Commission in implementing a Third-Party Access (TPA) framework, that will allow third party natural gas and LPG suppliers access to the distribution network owned by GMB. The full implementation of the TPA is expected to begin in 2020, subject to regulators' decision, and will take into consideration the encouragement of a healthy commercially-competitive market that will benefit consumers.

GMB has also recently incorporated two new entities in diversifying their business, which are Gas Distribution Malaysia Sdn Bhd for gas distribution licence, as well as Gas Malaysia Energy and Services Sdn Bhd for the shipping business. 

(Sources: New Straits Times)

GE Signs Agreement For 1,440 MW Combined-Cycle Power Plant In Malaysia

ENERGY - Malaysia
April 2018

GE’s Power Services business announced in March 2018 its signing of a multi-year agreement with Southern Power Generation Sdn Bhd (SPG) for its new Track 4A plant, a 1,440 MW combined-cycle power plant in Pasir Gudang, Johor, Malaysia. Under the terms of the 21-year agreement, GE will provide service solutions for the first two GE 9HA.02 gas turbines to be installed in the country and deploy its Asset Performance Management (APM) software to help improve asset viability, reliability and availability of SPG’s plant, contributing to long-term energy security needs in the country.

Under the terms of the agreement, GE will provide a full spectrum of digital solutions and plant improvement services, major inspections of the 9HA.02 gas turbines, along with technical advisory services. The agreement also includes GE’s suite of digital solutions. APM improves asset viability, reliability and availability and reduces operating and maintenance costs, improve inspection intervals and provide valuable insights into operational risks. Data collected form sensors throughout the facility will be monitored 24/7 at GE’s Monitoring & Diagnostics (M&D) Center in Kuala Lumpur.

The services deal follows the success of achieving the financial closure for the engineering, procurement and construction (EPC) contract with SPG in October 2017, marking the growing fleet of GE’s largest gas turbine platform to a total of over 70 units of the HA-platform gas turbines ordered to date.

The plant will be jointly constructed through the collaboration with a Taiwanese EPC partner, CTCI Corporation. It will consist of two generating blocks, each equipment with a 9HA.02 gas turbine, generator and heat recovery steam generator from GE. GE has invested almost USD 2 billion in the development of HA technology. Globally, a total of more than 20 units of HA are running in the field, clocking in more than 70,000 operating hours with an average combined-cycle net efficiency of greater than 62% at ISO conditions. 

(Sources: GE Newsroom)

Sarawak Leads Renewable Energy Adoption

ENERGY - Malaysia
April 2018

According to the Sarawak Energy Berhad (SEB), the key energy player in Sarawak state, the region has been at the forefront of sustainable energy development over the past few years. SEB announced in April 2018 that the region has raised its hydropower generation capacity from 108 MW before 2011 to over 3,400 MW today, with another 1,285 MW set to further energise the state by 2025. With the guidance from the state government, SEB has made hydropower the predominant source in its generation mix, representing 75% share in the state’s energy mix.

This has further enabled it to meet the state’s need for sustainable, renewable and affordable energy as well as realise the United Nations Sustainable Development Goal 7 – to ensure access to affordable, reliable, sustainable and modern energy for all. Diversity of energy resources with large hydropower dominating the mix has also enabled the Sarawak government to provide the lowest electricity tariffs in Malaysia, and also one of the lowest rates in the region. At present, Sarawak has three hydroelectric power lants – Batang Ai, Murum and Bakun. The fourth, which is Baleh Hydroelectric Dam, is under construction and expected to be completed by 2026.  

SEB has also embarked on a strategic plan to pursue renewables like solar and micro-hydro to accelerate rural electrification in the state, putting in place stand-alone off-grid power generation systems in remote rural areas. In 2017, it recorded the use of about 90 MW of solar power via a host of initiatives, which include the internationally recognised Sarawak Alternative Rural Electrification Scheme (SARES).

Moving forward, SEB hopes to diversify the range of alternative renewables to include hydrogen fuel cells. It is currently in the process of studying its production, storage and usage characteristics. SEB reported that its generation carbon intensity had been reduced by 72% since 2010, making the state a significant contributor to Malaysia’s vision of achieving its Paris COP 21 targets. 

(Sources: Borne Post)

Tenaga Signs PPAs For 6 Large-scale Solar Projects In Malaysia

ENERGY - Malaysia
March 2018

Malaysian utility Tenaga Nasional Bhd has announced that it has sealed six large-scale power purchase agreements with the following special purpose companies:

  • Kenyir Gunkul Solar Sdn. Bhd.: 29.99 MW Solar PV Plant, located in Dungun, Trengganu
  • Idiwan Solar Sdn. Bhd.: 30 MW Solar PV Plant, located in Machang, Kelantan
  • BGMC BRAS Power Sdn. Bhd.: 30 MW Solar PV Plant, located in Kuala Muda, Kedah
  • Viva Solar Sdn. Bhd.: 30 MW Solar PV Plant, located in Sik, Kedah
  • Cypark Estuary Solar Sdn. Bhd.: 30 MW Solar PV Plant, located in Empangan Terip, Negeri Sembilan
  • Cove Suria Sdn. Bhd.: 30 MW Solar PV Plant, located in Empangan Kelinchi, Negeri Sembilan

Each of the special purpose companies will design, construct, own, operate and maintain a solar photovoltaic energy generating facility. The PPAs govern the obligations of the Parties to sell and purchase the energy generated by the facility for a period of 21 years from the commercial operation date in accordance with the agreed terms and conditions. The six companies were among the winning bidders in a solar tender held by Suruhanjaya Tenaga, Malaysia’s Energy Commission, in the first quarter of last year. The six plants are expected to kick off commercial operations between December 31, 2019 and December 31, 2020.

(Source: Tenaga Nasional Berhad)

Petronas Explores Joint Venture With SK Group

ENERGY - Malaysia
March 2018

South Korean energy conglomerate SK Group is in talks with Malaysian state energy firm Petronas for potential joint ventures in petrochemical and renewable energy projects. SK Group could also invest in Petronas’ Refinery and Petrochemical Integrated Development (RAPID) project in the southern Malaysian state of Johor. RAPID is a USD 27 billion project located between the Malacca Strait and the South China Sea. The project will contain a 300,000 barrel-per-day oil refinery and a petrochemical complex with a capacity of 7.7 million metric tonnes a year. Refinery operations are set to begin in 2019, with petrochemical operations to follow 6-12 months afterwards.

Petronas is a Malaysian oil and gas company that is wholly owned by the Government of Malaysia. The corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and adding value to these resources. It is ranked as the 12th most profitable company in the world and the most profitable in Asia.

(Source: InvestSize)

Cypark Wins MYR 261 Million Contract To Build Large Scale Solar Plant

ENERGY - Malaysia
February 2018

Cove Suria Sdn Bhd has awarded a RM 261 million (USD 66.7 million) turnkey contract to CYpark Resources Bhd to build a large scale 30 MW solar photovoltaic (PV) plant in Empangan Kelinchi, Negeri Sembilan. Cypark is an environmental technology and engineering specialist focusing on integrated renewable energy, waste management solutions and environmental remediation. The contract entails Engineering, Procurement, Construction and Commissioning of the plant (EPCC), and Operations & Maintenance (O&M). The contract period for the EPCC spans 24 months from the commencement date, and 21 years for the O&M.

The project will further strengthen Cypark Resources’s position as one of Malaysia’s leading integrated renewable energy developers and green engineering solution providers. With the completion of the solar PV plant, the group will significantly increase its renewable energy capacity in the country.

(Sources: New Straits Times; The Star Online)

Scatec Solar Secures A 40MW PV Project In Malaysia

ENERGY - Malaysia
January 2018

Norway-based Scatec Solar ASA and its partners have been awarded a 40 MW DC (30 MW AC) PV project through a tender held by the Energy Commission of Malaysia. Scatec will be joined by Fumase, a US- and Malaysia-based asset management and development company focusing on renewable energy in South and South East Asia.

The project involves building a power plant in the state of Perak capable of delivering 65 GWh of electricity per annum. The construction will commence in the second half of 2018, while grid connection work will start in the second half of the following year. Expected annual revenues to be generated from the project is around USD 6 million, with capex estimated to USD 50 million. Scatec Solar also reported that the work to secure project finance from commercial banks in Malaysia has been started. The company will be an equity partner and turn-key EPC provider, delivering Operation & Maintenance and Asset Management services to the power plant.

Malaysia has emerged as an attractive solar market as consumers and businesses become increasingly aware of its benefits not just to the environment but also to the economy. The Malaysian government has also introduced various incentive and strategies to encourage the growth of the renewable energy sector in Malaysia with solar energy being positioned to play a large role in the country's energy mix in the future. 

(Sources: Scatec Solar; Global News Wire; Star Online)

New Large-Scale Solar PV Plant In Negeri Sembilan

ENERGY - Malaysia
December 2017

Cypark Resources, a Malaysia-based environmental engineering firm, has announced that its subsidiary has been awarded a 30 MW PV project in Malaysia’s latest solar auction. A consortium, comprising Cypark Renewable Energy Sdn. Bhd and Revenue Vantage Sdn. Bhd., has been given the green light to install the large-scale solar PV project in Empangan Terip, in the state of Negeri Sembilan. The consortium is required to fulfill the conditions as set out in the letter of acceptance of offer prior to the Malaysian Energy Commission issuing the formal award letter for the project.

Figures from Malaysia’s energy commission show that projects that have been awarded a feed-in tariff (FIT) and which have achieved their FIT commencement date total just 13.04 MW in 2017; another 39.31 MW are said to be under construction. Overall, the country has an installed capacity of 352.10 MW.

 

(Sources: The Edge Markets; MIDA; Cypark Resources Berhad)

Sapura Energy Bags Contracts Worth MYR 1.47B

ENERGY - Malaysia
November 2017

Sapura Energy Bhd, the largest oil and gas services firm in Malaysia, has been awarded five contracts worth RM 1.47 billion (USD 359 billion) through its subsidiaries in Malaysia and Brazil and include work for Petronas, Shell, and Repsol.

Sapura Offshore has been awarded contracts to undertake the 2018 scope of work in relation to the Pan Malaysia transportation & installation of offshore facilities for Petronas Carigali and Sarawak Shell Berhad. The work comprises transportation and installation of offshore facilities including platform, structures and pipelines and its associated works. The work will be executed throughout 2018.

Furthermore, Sapura Fabrication and its partner, Borneo Seaoffshore Engineering, have been awarded a contract to undertake the provision of maintenance, construction and modification (MMC) services (Package A – Offshore) – Sarawak Gas for Petronas Carigali. The scope of work will include any or all other work and services which is generally related to topside structural maintenance, hook up and commissioning, and facilities improvement program. The contract is on a call-out basis where works will be carried out according to work orders issued by Petronas Carigali. The duration of the contract will be for a primary period of five years expiring in September 2022 with one year extension option.

In addition, Sapura Fabrication has been awarded a contract to undertake the provision of hook-up, commissioning and offshore construction services by Repsol Oil & Gas Malaysia. The work comprises onshore preparation and handling, onshore pre-fabrication works, offshore installation and hook-up, inspection, testing and pre-commissioning of structural members and supports, piping, instrument and electrical equipment on existing and new production and processing platforms and facilities. This contract is also on a call-out basis where works will be carried out according to work orders based on agreed unit rates and prices. The contract duration is for a primary period of two years expiring in September 2019 with one year extension option.

Sapura Fabrication has also been awarded a contract for the provision of mechanical works for the Flexi High Density Polyethylene (HDPE) Plant for Rapid Project – Unit 3215 by TecnimontHQC. The work consists of the provision of project management, supervision, equipment, tools and labor for the mechanical work package. The work is expected to be completed by March 2019.

(Source: Sapura Energy)

Biomass Sector On Track To Meet MYR 25 Billion Investment Target By 2020

ENERGY - Malaysia
October 2017

The Malaysian Investment Development Authority (MIDA) is optimistic in achieving its investment target for the biomass sector, as the sector is experiencing a positive momentum. MIDA is bullish in engaging both local and international investors in the development of Malaysia's biomass sector. In accordance with the National Biomass Strategy 2020 launched in 2016, the country targets to attract MYR 25 billion (USD 5.9 billion) worth of investments by 2020. A total of 226 biomass projects with investments worth MYR 2.92 billion (USD 688 million) was recorded from 2011 to 2016. Close to 70% of these investments valued at MYR 1.97 billion (USD 465 million) were from domestic contributions.

Palm is the main source of biomass in Malaysia. Oil palm plantations and mills in Malaysia generated about 82 million tonnes of oil palm biomass in 2016. The mills also generated about 57.31 million tonnes of palm oil mill effluent (Pome) from processing 85.54 million tonnes of fresh fruit bunches. Taking into account the abundant availability of biomass, especially from the oil palm sector, Malaysia is looking to take advantage of the resource and maximise its full potential by moving further downstream and creating opportunities in the high value sector.

(Sources: ISEAS-Yusof Ishak Institute; New Straits Times; The Star Online)

30% Renewable Energy Generation Within 8 Years

ENERGY - Malaysia
September 2017

The Ministry of Energy, Green Technology and Water (KeTTHA) is targeting to achieve 30% of energy generation from renewable sources in the next eight years. Today Malaysia's electricity mix today involves more renewables, with 25% or 6,500 MW of energy derived from solar, biomass, biogas and mini-hydro. In particular, the country is banking on growing its solar sector, and is targeting to generate 1,250 MW solar energy by 2020. 

According to the Malaysian Investment Development Authority (MIDA), Malaysia is ranked as the world’s third largest producer of PV cells and modules. The country has an ecosystem comprising 250 companies involved in upstream activities such as poly silicon, wafer, cell and module production and downstream activities such as inverters, and system integrators.

The government is planning to launch the Malaysian Solar PV Roadmap 2030 at the end of the year to drive the country’s solar PV industry forward. It has initiated bids for the construction of 1,000 MW solar energy projects - of these, 450 MW were completed at the end of 2016, while successful companies that win the tenders for the second phase involving 550 MW will be announced at the end of 2017.

Tenaga Nasional Berhad (TNB) is one of 12 bidders, and has submitted a proposal to install a 50 MW large-scale solar (LSS) facility worth MYR 348 million (UDS 82.8 million). This LSS project is said to be the biggest in South East Asia and it is expected to be completed in November 2018.

(Sources: MIDA; Solarvest; BERNAMA)

Malaysia’s Electricity Tariffs Among Lowest In South East Asia

ENERGY - Malaysia
August 2017

Electricity tariffs in Malaysia for the consumer, residential, industrial and commercial segments are among the lowest in South East Asia. The residential segment enjoys the lowest tariff as it receives a cross-subsidy from the industrial and commercial sectors.

In contrast to tariff structure in developed countries where domestic consumers pay a higher tariff than the industrial sector, Malaysia’s electricity tariff structure is designed to not burden the consumers but to help them. Malaysians also enjoy rebates when they have used MYR 20 (USD 4 dollars) in their monthly electricity bill.

Funds for subsidies come from renegotiations with the first generation IPPs which had signed power purchase agreements with the country’s Energy Commission, which have resulting in savings of MYR 1.8 billion (USD 420.5 million).

There is, however, a possibility that the government may impose a surcharge instead of giving a rebate if fuel prices continue to rise or in situations of an unfavorable exchange rate.

(Sources: The Malay Mail; The Malaysian Reserve)

Thailand's PTT Interested To Invest In Malaysia Gas Facility

ENERGY - Malaysia
July 2017

Thailand's state-owned oil and gas giant PTT Plc is thinking of taking a stake in a natural gas liquefaction plant to be constructed in Malaysia, according to a company spokesperson. PTT's board is considering the project, which is to be built in collaboration with Malaysia's Petronas. It is reported that the company is looking to hold a 10 % stake in the new facility. The move aims to help create value in PTT's midstream business, which is small compared with its total business covering both the upstream end, with PTT Exploration and Production Plc (PTTEP), and its downstream gas business, including a LNG terminal at Map Ta Phut that operates a LNG distribution business. PTT has a growing interest in importing natural gas for power generation as domestic sources begin to dwindle, while Petronas is on the lookout for ways to broaden and expand its customer base for LNG.

Petronas is also looking to develop the natural gas block SK316 located in the Sarawak in East Malaysia, which has about 12 trillion cubic metres of proven and probable gas reserves, with some of them containing relatively higher levels of carbon dioxide (CO2) content. Petronas is looking to explore technologies for application in the SK316 block and has already invited proposals in order to select an E&P partner for the project.

(Source: Times of India, Reuters)

Malaysian And Kazakh Firms Tie-ups For USD 1 Billion Renewable Energy Projects

ENERGY - Malaysia
June 2017

The business matching sessions held during the Renewable Energy Week programme organised by Malaysia at EXPO 2017, saw potential cooperation in energy projects worth about USD1 billion identified between Malaysian companies and their Kazakh counterparts. These activities aim at forging trade, investment and cooperation between Malaysia and Kazkahstan as well as the other participating countries, in areas such as renewable energy, energy efficiency, Islamic green financing, halal industry and green technology.

A total of 27 Kazakh companies and seven Malaysian companies attended the first business matching session held in conjunction with Renewable Energy Week. Some of the deals in discussion include Pekat Group's subsidiary Pekat Solar Sdn Bhd being offered to acquire 75% equity in a Kazakhstan government-owned company for USD 10 million. In addition, KazTransGas expressed interest to have a joint venture with a Malaysian company in a gas pipeline project from Astana to Kyzylorda, wich is worth USD 948 million.

(Source: Malaysian Green Technology Corporation)

Malaysia's Sapura Energy Says Interest In Upstream Projects Picking Up

ENERGY - Malaysia
May 2017

Malaysia's largest oil and gas service provider said it was beginning to see interest building in upstream projects following sharp rollbacks in recent years from lower oil prices. It attributed the increase in interest to the recovery in oil prices and the need to replenish a natural drop in reserves. Brent crude prices have recovered about 80% from 12-year lows hit early in 2016, although they are still at less than half the levels of mid-2014 due to a supply glut, and retreated back below USD 50 at the end of last week.

The drop-off in prices over the last three years has forced global oil and gas majors to sharply cut costs and capital spending, especially for upstream - or exploration and production  projects. In Malaysia, national oil company Petroliam Nasional Berhad (Petronas) mentioned last year it would slash spending by USD 11.5 billion over the next four years, hurting service providers such as Sapura. Sapura will look at new markets in the Middle East, the Mediterranean, and East and West Africa, and expand into existing markets like Mexico.

(Sources: Times of India, Reuters)

The First & Largest Solar Farm In Kedah

ENERGY - Malaysia
May 2017

Edra Power Holdings Sdn Bhd, recently acquired by China General Nuclear Power Corp, is building a MYR 400 million (USD 93.2 million) solar power plant occupying a 200-acre land in Kedah, the biggest investment seen in the state of Kedah in years.  Kedah, with abundant flat land was the preferred location compared to other states such as Kelatan and Terengganu which have more hilly terrain. It is the first and largest 50 MWAC solar panel farm in Malaysia and is in line with the government mix-fuel policy of cutting down the carbon emission footprint. The solar power plant project will speed up Kedah’s own industrialisation pace, create jobs, as well as corroborate the Energy Commission’s green energy statement and Malaysia’s green program. The Malaysian government has put in place all the guidelines and processes for the bidding for renewable energy mix coming on stream.

(Source: The New Straits Times, The Star)

Malaysian And Indian Companies Ink Deals Worth USD 36 Billion

ENERGY - Malaysia
April 2017

Malaysian and Indian companies today inked investment deals, worth an estimated USD36 billion, in a move to further enhance bilaterial and investment ties between both countries.  Out of the total, USD 32.13 billion worth of projects will be implemented in Malaysia while USD 3.86 billion worth of projects will be carried out in India. One of the investment is related to Floating Solar Power Plant projects to be installed in Malaysia’s Hydro Power Plant Dams by Mutiara Etnik Sdn Bhd (Malaysia) and Vatsaa Energy Pvt Ltd (India).

(Sources: The Malay Mail, Asean Breaking News)

Malaysia Will Soon Auction 460 Megawatts Of Solar Projects

ENERGY - Malaysia
March 2017

The Energy Commission of Malaysia has called for bids from prospective project developers for 460 megawatts of solar power capacity. A large majority of this capacity (360 megawatts) will be located in Peninsular Malaysia while 100 megawatts of capacity will come up in Sabah and Labuan regions.

The capacity of each project will be in the range of 1 to 30 megawatts and will be connected to the grid. Power generated from these projects will be sold to the utilities Tenaga Nasional Berhad (TNB) or Sabah Electricity Sdn. Bhd. (SESB).

Over the last few years, Malaysia has seen several major activities in the solar power sector. In 2015, JinkoSolar announced that it would set up 500 MW of solar PV modules and a 450 MW cell manufacturing unit in Penang, Malaysia, at an estimated cost of USD100 million. Hanwha Q Cells also has moved its production base from Germany to Malaysia.

Malaysia’s Sustainable Energy Development Authority (SEDA) has set long-term targets which would see 24% of all the electricity generated in the country from renewable energy sources by 2050.

(Sources: PV Tech, Smart City News)

Saudi Aramco Buys USD7billion Stake In Malaysian Refining Project

ENERGY - Malaysia
February 2017

Saudi oil giant Aramco is buying an equity stake in Malaysian firm Petronas’ major refining and petrochemicals project in the southeast Asian country, investing a total of USD 7 billion, the companies confirmed . In a joint statement the firms Aramco will take a 50% stake in select ventures and assets in the Refinery and Petrochemical Integrated Development (Rapid) project developed by Malaysian state-controlled Petroliam Nasional Berhad, known as Petronas.

Aramco will supply up to 70% of the crude feedstock requirement of the refinery, with natural gas, power and other utilities to be supplied by Petronas. Rapid will contain a 300,000 barrel-per-day oil refinery and a petrochemical complex with a production capacity of 7.7 million metric tonnes. It is expected to go online in the first quarter of 2019. The facility is planned as part of the Pengerang Integrated Complex (PIC) in the southern Malaysian state of Johor that will include Rapid and oil storage facilities.

(Sources: Financial Times, Arab News)

Sapurakencana Wins Total USD 216 Million Contracts

ENERGY - Malaysia
January 2017

SapuraKencana Petroleum Berhad has provided an update on the recent contracts awarded to its subsidiary companies, which total about USD 216 million. PETRONAS Carigali Sdn. Bhd. (PCSB) has contracted SapuraKencana Subsea Services Sdn. Bhd. for the provision of underwater services at facilities located offshore Peninsular Malaysia.

The scope of work consists of underwater services together with vessels, air and saturation diving, ROV and other related underwater services, including inspection, maintenance, and repair.  The contract is for a period of two years and the work is to be performed on a call-out basis. PCSB also has contracted SapuraKencana GeoSciences Sdn. Bhd for soil investigation services at a Peninsular Malaysia operation and Sarawak/Sabah operation area. The contract is for a period of one year with an option to extend for a further one-year period.

(Sources: Hydro Carbon Reports, OffShore Energy Today )

Norwegian Scatec Solar To Enter Malaysian Solar Energy Market

ENERGY - Malaysia
December 2016

Norwegian Scatec Solar, a global producer of solar power, is entering the Malaysian solar energy market by partnering with a consortium led by the Kuala Lumpur-based ItraMAS. The partnership will involve the building of three solar parks capable of producing a combined capacity of up to 200 MW. The parks, sized over 200-acres, will be set up in Merchang, Jasin and Gurun in Penisular Malaysia with total investment of around USD 300 million.

Scatec Solar would be involved in undertaking the engineering, procurement and construction (EPC) works for the project. The company will have 49% ownership stake in the partnership with investment worth around USD 60 million. ItraMAS, together with two other Malaysian companies Maltech and Cam Lite, formed a consortium to sign 21-year Power Purchase Agreements (PPAs) for the three parks with Tenaga Nasional Berhad, Malaysia’s largest utility company. The parks will be capable of producing 285,000 MWh of electricity annually. 

(Sources: Globe Newswire, Scatec Solar)

Malaysia Records Increased Approved Renewable Energy Investments

ENERGY - Malaysia
November 2016

Malaysia has approved a total of MYR 2.07 billion (USD 482.3 million) worth of renewable energy investments in the first eight months of 2016, surpassing the value of MYR 1.37 billion (USD 319.22 million) recorded for the whole 2015. Speaking after opening the Renewable Energy Symposium on November 29th, Deputy CEO II of the Malaysian Investment Development Authority (MIDA) informed that the investment value between January and August 2016 was 33% higher than the whole 2015, indicating that Malaysia remains an attractive destination for foreign direct investments despite the global economic slowdown.

The symposium was held to introduce German technologies in renewable energy-related areas particularly in decentralized and off-grid power generation to Malaysian public and private stakeholders. Germany continues to be the largest investor among the European Union countries in Malaysia, with a total of MYR 41.02 billion (USD 9.56 billion) worth of approved investment. It is also Malaysia’s 12th largest trading partner in the world, with MYR 43.03 billion (USD 10.03 billion) worth of bilateral trade recorded in 2015. German companies present in Malaysia include Osram, B. Braun, Robert Bosch, Siemens, BASF and Infineon.

(Sources: The New Straits Times)

Malaysia To Increase Solar Photovoltaic Production

ENERGY - Malaysia
October 2016

Malaysia is set to increase its solar photovoltaic (PV) production. The country produced 12% of the global solar PV output in 2015 totalled 50.8 GW and has been ranked as the third largest producer of solar PV in the world behind China (48%) and Taiwan (20%). The country is aiming to be the second largest producer by stepping up production to reach 20% by 2020. To achieve the target, Malaysia is now looking to adopt green technologies and embarking on net energy metering (NEM) initiative to increase solar energy growth in the country. Through NEM, houses and buildings owners would be encouraged to generate solar PV for their own consumption while selling excess to utility companies. The NEM initiative is also seen as an effort to reduce greenhouse gas emission as Malaysia has vowed to reduce its intensity of greenhouse gas emission of GDP by 45% come 2030.

(Sources: Clean Malaysia, The Malay Mail Online)