Petroliam Nasional Bhd (Petronas), which is currently developing Malaysia's first liquefied natural gas (LNG) receiving terminal in Melaka, is encouraged to learn that national utility company, Tenaga Nasional Bhd (TNB), is considering to import LNG to part-fuel its power plants.
Petronas' Executive Vice-President of Gas and Power Business Datuk Anuar Ahmad said the terminal, once operational, would have a provision for third-party access for the purpose of importing LNG into the country.
"This is in line with our philosophy of allowing third-party importers to use the terminal to land LNG, which could be sourced from various global suppliers, for their own use," he said.
He was responding to a query from Bernama on reports that TNB, through its fuel procurement subsidiary, TNB Fuel Services Sdn Bhd, is engaging consultants for short-and long-term LNG supply management.
"We hope third parties such as power and utilities providers and other gas consumers would be encouraged to source for their own gas. This would in turn help ease Malaysia's tight supply situation and the dependence on the country's declining gas resources.
"We are therefore encouraged to read reports that TNB, the country's utility giant, is drawing a long-term strategy for LNG supply management, a move that Petronas welcomes," Anuar said.
If adopted, the strategy would be akin to the approach long taken by power and utility players in other parts of the world, particularly those in countries with little or insufficient indigenous gas resources, he said.
In some of these countries, he said, power and utility players would also build their own LNG receiving terminals.
The Melaka terminal, being developed by Petronas Gas Bhd, will have the capacity to process 530 million standard cubic feet of gas per day.
It is scheduled to be commercially operational in August 2012. A second LNG receiving terminal is being planned in Johor, which would allow for similar third-party access arrangements.
Anuar noted that total gas consumption in Malaysia increased by more than 33 per cent from 2000 to 2010, pushed up mainly by the introduction of regulated prices by the Government in 1997 to help Malaysian power and industrial players cushion the impact of the Asian financial crisis.
The new demand was mostly from customers who converted from other fuels to gas, he said, adding that even in the power sector, due to the subsidised prices, power producers would usually dispatch their gas plants first before plants that use other fuels to generate electricity.
"The 1997 crisis came and went, yet the gas prices remain regulated, creating more demand on an already tight gas situation compounded by declining resources. There is no shortage of other fuels in the market. But when you have a subsidised option, people would not go for the more costly alternatives.
"In Malaysia, we have a situation where gas - because it is "cheap" -- is used as a base load for power generation. This is in contrast to other economies where gas, being a clean energy and fetches a premium, the power companies use coal as their base load," he added.
Anuar said the "cheaper" gas prices, however, come with a heavy cost to PETRONAS, which buys the gas from producers at market prices but sells to the power sector and other industries at a heavily discounted prices.
"Up to August 2011, Petronas has foregone revenue amounting to RM103.2 billion for gas supplied to the power sector alone, out of a total of RM143.4 billion arising from price differentials between the market price and the regulated price," he said.
While the demand for natural gas has increased, its production has been declining. From 2006 to 2011, the production rate from Malaysia's existing gas fields declined between six and 29 per cent.
Anuar reiterated that Petronas had as early as 2005 warned the power and non-power industries as well as the regulators of the potential crunch in gas supply, making known its view that over-dependence on gas was not sustainable.
Regular discussions and engagement sessions were also held with the intention that customers could plan ahead necessary measures and actions to mitigate potential impact on their operations and business.
However, the convenience of cheap gas continued to drive demand, he said.
"Because of the high gas utilisation, we have to operate our upstream and downstream facilities at full capacity on a continuous basis for many years without any operating margin. This is simply not sustainable and cannot continue.
"Despite that, we continue to undertake our regular maintenance. Therefore it is incorrect for some parties to say that Petronas and its upstream partners are not doing maintenance and that the tight supply of gas is due only to maintenance issue," he added.
Anuar said as indigenous production was not able to meet demand, Petronas had been purchasing piped gas at market prices from external sources.
From January to August this year, about 37 per cent of Peninsular Malaysia's gas needs were met by imports from Indonesia and from gas developed in the overlapping Malaysia-Thai and Malaysia-Vietnam areas.
However, he warned that securing such supply might soon become a challenge as production at these sources were also decreasing, which would mean less molecules for Petronas to purchase.
"We are positive that our receiving terminal in Melaka, and the one planned for Johor, would help ease the supply situation. However, there is still a need to address the fuel-mix issue for power generation to ensure the security of power supply in the country. We cannot be over-dependent on gas.
"Malaysia's hydrocarbon resources are finite. Petronas believes that everyone has a role to play in making the nation more energy efficient.
Assigning blame on any party will not help. At Petronas, we are doing our utmost to meet our gas supply obligations. If all of us do our bit, we would be able to prolong the life of our resources for the benefit of our children and future generations," he added.
Friday, 11 November 2011
Thursday, 10 November 2011
Petronas to cut production loss with PRBI software
Petronas will save production lost due to shutdowns at its plant for inspection by the Department of Occupational Safety and Health (DOSH) with the introduction of its Online Risk-Based Inspection (PRBI) Interface software.
Petronas’ technology and engineering division vice president Dr Colin Wong said the software would be an online approval system for the issuance of certificates of fitness (CF) of DOSH-registered machinery at its plants.
“For example, our refinery plant in Melaka processes around 300,000 barrels (sweet crude oil and condensate) per day and we make around US$5 to US$10 per barrel.
“We need to have one or two shutdowns per year on average.
“We also have the IPC (Integrated Petrochemical Complex) in Kerteh (Terengganu) and Gebeng (Kuantan, Pahang), as well as plants in Bintulu (Sarawak) and Labuan, if we look at the whole country around five shutdowns a year,” he told reporters here yesterday.
He made the remarks after the signing of a Memorandum of Understanding (MoU) between Petronas and DOSH to facilitate the introduction of the software.
Wong signed on behalf of Petronas while DOSH was represented by its director-general Datuk Dr Johari Basri.
Under the terms of the MoU, DOSH would have access to Petronas PRBI software using the Online PRBI Interface, developed to enhance the efficiency of the CF issuance process to Petronas by DOSH.
Wong said with the Online PRBI Interface, DOSH would be able to ulitise and access risk-based data from remote locations and minimise mobilisation and site visits by DOSH personnel prior to the inspection process.
He said Petronas’ Liquefied Natural Gas (LNG) plant in Bintulu would be the first complex to use the PRBI interface.
“Petronas developed PRBI around 10 years ago to provide a central database that facilitates the equipment risk-ranking process through a web-based platform, allowing the data to be conveniently accessed.
“The Online PRBI Interface is a much awaited add-on for PRBI.
“This will also promote the implementation of self-regulation in Malaysia’s oil and gas industry,” he said.
Meanwhile, Johari said the plant has to shut down an average of seven days for an inspection.
“Seven days means a lot of production lost for a company and Petronas’ development of this software is most welcome in making sure they minimise their production loss and help us to inspect then issue the CF for the machinery.
“We inspect around 150,000 machines a year for their CF, and the software speeds up our work.
“DOSH personel still have to go to the plant to inspect but not as often as before, and the period of inspection can also be minimised,” he said.
He also urged other industrial companies in Malaysia to develop similar software to minimise plant shutdown and lost production.
Petronas’ technology and engineering division vice president Dr Colin Wong said the software would be an online approval system for the issuance of certificates of fitness (CF) of DOSH-registered machinery at its plants.
“For example, our refinery plant in Melaka processes around 300,000 barrels (sweet crude oil and condensate) per day and we make around US$5 to US$10 per barrel.
“We need to have one or two shutdowns per year on average.
“We also have the IPC (Integrated Petrochemical Complex) in Kerteh (Terengganu) and Gebeng (Kuantan, Pahang), as well as plants in Bintulu (Sarawak) and Labuan, if we look at the whole country around five shutdowns a year,” he told reporters here yesterday.
He made the remarks after the signing of a Memorandum of Understanding (MoU) between Petronas and DOSH to facilitate the introduction of the software.
Wong signed on behalf of Petronas while DOSH was represented by its director-general Datuk Dr Johari Basri.
Under the terms of the MoU, DOSH would have access to Petronas PRBI software using the Online PRBI Interface, developed to enhance the efficiency of the CF issuance process to Petronas by DOSH.
Wong said with the Online PRBI Interface, DOSH would be able to ulitise and access risk-based data from remote locations and minimise mobilisation and site visits by DOSH personnel prior to the inspection process.
He said Petronas’ Liquefied Natural Gas (LNG) plant in Bintulu would be the first complex to use the PRBI interface.
“Petronas developed PRBI around 10 years ago to provide a central database that facilitates the equipment risk-ranking process through a web-based platform, allowing the data to be conveniently accessed.
“The Online PRBI Interface is a much awaited add-on for PRBI.
“This will also promote the implementation of self-regulation in Malaysia’s oil and gas industry,” he said.
Meanwhile, Johari said the plant has to shut down an average of seven days for an inspection.
“Seven days means a lot of production lost for a company and Petronas’ development of this software is most welcome in making sure they minimise their production loss and help us to inspect then issue the CF for the machinery.
“We inspect around 150,000 machines a year for their CF, and the software speeds up our work.
“DOSH personel still have to go to the plant to inspect but not as often as before, and the period of inspection can also be minimised,” he said.
He also urged other industrial companies in Malaysia to develop similar software to minimise plant shutdown and lost production.
Tuesday, 1 November 2011
Petronas wants to boost overseas oil & gas ventures
Malaysia's oil and gas firm Petronas wants to "high grade" its international operations by acquiring more valuable assets and exiting from less profitable ventures, the Edge newspaper reported today.
The weekly paper cited Petronas Executive Vice President of Exploration and Production Wee Yiaw Hin as saying the state-linked firm was keen on expanding in Asia, West Africa and South America.
"We actually want to grow our international operations. We will get out of those (countries) where profitability is low. And we have a few more on the list," Wee was quoted as saying.
"Algeria is one. Over there, there is not a big field to develop, costs have gone up, profitability is very weak and its not easy to succeed," he added.
In recent months Petronas has announced plans to develop marginal oil fields back home and exit ventures in Pakistan and Ethiopia, triggering speculation the oil firm was scaling down on international operations.
Petronas, which has a presence in 23 countries, is deriving good value from operations in Sudan, Myanmar, Turkmenistan and Vietnam and is on the lookout for "new basins and a few value growth areas" in these regions, Wee said.
He said Brazil and West Africa are also key targets for Petronas that will continue to grow its international business through government-to-government deals.
"We will (also) go according to business fundamentals, for example, in areas like western Africa and Brazil, which have 21 billion barrels of oil," said Wee, who has worked in Shell for 30 years.
"We have looked at the rocks, we are quite clear that the rocks are good and we are sure there will be success."
The four oil blocks in Iraq that Petronas won the rights to jointly develop will hit first commercial production by early as end 2012, Wee said. – Reuters
The weekly paper cited Petronas Executive Vice President of Exploration and Production Wee Yiaw Hin as saying the state-linked firm was keen on expanding in Asia, West Africa and South America.
"We actually want to grow our international operations. We will get out of those (countries) where profitability is low. And we have a few more on the list," Wee was quoted as saying.
"Algeria is one. Over there, there is not a big field to develop, costs have gone up, profitability is very weak and its not easy to succeed," he added.
In recent months Petronas has announced plans to develop marginal oil fields back home and exit ventures in Pakistan and Ethiopia, triggering speculation the oil firm was scaling down on international operations.
Petronas, which has a presence in 23 countries, is deriving good value from operations in Sudan, Myanmar, Turkmenistan and Vietnam and is on the lookout for "new basins and a few value growth areas" in these regions, Wee said.
He said Brazil and West Africa are also key targets for Petronas that will continue to grow its international business through government-to-government deals.
"We will (also) go according to business fundamentals, for example, in areas like western Africa and Brazil, which have 21 billion barrels of oil," said Wee, who has worked in Shell for 30 years.
"We have looked at the rocks, we are quite clear that the rocks are good and we are sure there will be success."
The four oil blocks in Iraq that Petronas won the rights to jointly develop will hit first commercial production by early as end 2012, Wee said. – Reuters
Monday, 31 October 2011
Petronas: policy to award licences to oil/gas firms stands
Malaysia's state oil firm Petronas said on Friday it has not changed its policy of awarding licences to companies involved in its oil and gas production areas.
Petronas denied a local media report that said it would abolish its licensing system as part of a move to encourage greater competition in the oil and gas industry.
"All companies wishing to commence or continue any business or service related to Malaysia's oil and gas upstream operations and activities must apply for a licence from Petronas," the firm said in a statement.
"This policy... has not changed and applies to all local and foreign company service providers and suppliers," Petronas added.
Petronas denied a local media report that said it would abolish its licensing system as part of a move to encourage greater competition in the oil and gas industry.
"All companies wishing to commence or continue any business or service related to Malaysia's oil and gas upstream operations and activities must apply for a licence from Petronas," the firm said in a statement.
"This policy... has not changed and applies to all local and foreign company service providers and suppliers," Petronas added.
Saturday, 29 October 2011
Kuantan residents threaten sit-in if rare earth ore arrives
Kuantan folk have threatened to block operations of a controversial rare earth plant by holding a sit-in as claims that Lynas Corp is ready to ship in ore has heightened tension among increasingly nervous residents.
Although the Australian miner has denied any plans to ship in material from its Mount Weld mine, it has also said it is confident of starting operations by the end of the year.
Leaders of local anti-Lynas movements told The Malaysian Insider that after more than six months of lobbying against the RM1.3 billion refinery due to fears of radiation pollution, residents are now threatening to stop the plant at all cost.
“They are threatening to lie down in front of the factory. People are getting nervous and some are planning to move out of Kuantan,” Save Malaysia Stop Lynas chief Tan Bun Teet said.
This is despite the federal government giving its assurance that “there will be no importation of raw materials into the country, and no operational activities will be allowed on site” until Lynas meets conditions set out in July by an international team of radiation experts.
Although none of the community leaders contacted by The Malaysian Insider have planned a sit-in, they also refused to take responsibility over public anger should the government allow Lynas to bring in the ore to Kuantan port.
“I am not in control of the people. If it comes down to that (ore in Kuantan), people have said that they are prepared to sit-in,” said Kuantan MP Fuziah Salleh, who has led protests against the plant.
Andansura Rabu, whose Badar represents Beserah residents living as close as two kilometres away from the plant in the Gebeng industrial zone, said that after last Sunday’s Green Gathering had its police permit pulled at the 11th hour, locals were “getting more tense.”
“Anything can happen,” he said.
PKR vice-president Fuziah said yesterday the Kuantan Port Consortium told occupants of the port area “that Malaysia can expect the rare earth oxide from Mount Weld to arrive in Kuantan by the end of this month.”
Some 1,000 people, led by Fuziah and Bersih chairman Datuk Ambiga Sreenevasan, gathered in Kuantan over the weekend in protest against Lynas.
Lynas has refuted claims of radiation pollution, assuring Kuantan residents they would face “zero exposure.”
It is awaiting approval from the government after submitting its proposals on 11 conditions recommended by an expert review panel from the International Atomic Energy Agency (IAEA).
These include a comprehensive, long-term and detailed plan for waste management that covers decommissioning and remediation.
Although the Australian miner has denied any plans to ship in material from its Mount Weld mine, it has also said it is confident of starting operations by the end of the year.
Leaders of local anti-Lynas movements told The Malaysian Insider that after more than six months of lobbying against the RM1.3 billion refinery due to fears of radiation pollution, residents are now threatening to stop the plant at all cost.
“They are threatening to lie down in front of the factory. People are getting nervous and some are planning to move out of Kuantan,” Save Malaysia Stop Lynas chief Tan Bun Teet said.
This is despite the federal government giving its assurance that “there will be no importation of raw materials into the country, and no operational activities will be allowed on site” until Lynas meets conditions set out in July by an international team of radiation experts.
Although none of the community leaders contacted by The Malaysian Insider have planned a sit-in, they also refused to take responsibility over public anger should the government allow Lynas to bring in the ore to Kuantan port.
“I am not in control of the people. If it comes down to that (ore in Kuantan), people have said that they are prepared to sit-in,” said Kuantan MP Fuziah Salleh, who has led protests against the plant.
Andansura Rabu, whose Badar represents Beserah residents living as close as two kilometres away from the plant in the Gebeng industrial zone, said that after last Sunday’s Green Gathering had its police permit pulled at the 11th hour, locals were “getting more tense.”
“Anything can happen,” he said.
PKR vice-president Fuziah said yesterday the Kuantan Port Consortium told occupants of the port area “that Malaysia can expect the rare earth oxide from Mount Weld to arrive in Kuantan by the end of this month.”
Some 1,000 people, led by Fuziah and Bersih chairman Datuk Ambiga Sreenevasan, gathered in Kuantan over the weekend in protest against Lynas.
Lynas has refuted claims of radiation pollution, assuring Kuantan residents they would face “zero exposure.”
It is awaiting approval from the government after submitting its proposals on 11 conditions recommended by an expert review panel from the International Atomic Energy Agency (IAEA).
These include a comprehensive, long-term and detailed plan for waste management that covers decommissioning and remediation.
Tuesday, 25 October 2011
Malaysia's Petronas announces tender in Uzbekistan
TASHKENT, Uzbekistan -- The Malaysian Petronas Carigali Baisun Operating Company, a wholly-owned subsidiary of Petronas Carigali Overseas, has announced a tender for the provision of comprehensive services for the appraisal drilling in 2011-2014 under the PSA to develop gas fields in Boysun investment bloc in the Surkhandarya region in southern Uzbekistan, local media reported.
The report did not specify the parameters of the appraisal drilling program.
The principal directions of the further implementation of the PSA are conducting in-depth evaluation work to open up new and evaluate hydrocarbon reserves in the identified fields.
The bids are accepted until Nov. 21, and it will be summarized in late 2011.
The report did not specify the parameters of the appraisal drilling program.
The principal directions of the further implementation of the PSA are conducting in-depth evaluation work to open up new and evaluate hydrocarbon reserves in the identified fields.
The bids are accepted until Nov. 21, and it will be summarized in late 2011.
Monday, 24 October 2011
Dayang shares up after Murphy contract extension
Shares of Malaysian oil and gas services provider Dayang Enterprise Holdings Bhd rose as much as 5.3 per cent today after its maintenance services contract with Murphy Oil was extended.
The value of the contract was estimated to range between RM50-RM100 million (US$15.9-US$31.8 million) to provide topside maintenance services.
Dayang shares were up 4.1 per cent to RM1.77 per share as at 0824 GMT, compared to the broader market’s rise of 1.1 per cent. – Reuters
The value of the contract was estimated to range between RM50-RM100 million (US$15.9-US$31.8 million) to provide topside maintenance services.
Dayang shares were up 4.1 per cent to RM1.77 per share as at 0824 GMT, compared to the broader market’s rise of 1.1 per cent. – Reuters
Petronas to award jobs to unlicensed firms, report says
State oil firm Petronas will award contracts to unlicensed energy services companies to encourage greater competition in the oil and gas industry, The Edge weekly newspaper said citing unidentified sources.
The move would be a departure from the current practice where Petronas only hands out jobs to licensed players in certain segments such as oil and gas equipment makers and offshore support vessel operators, the report said.
The liberalisation measure is aimed at drawing more foreign investment to develop Malaysia as a regional energy hub, it added.
Petronas was not immediately available for comment.
The move would expose local energy services companies such as Malaysia Marine and Heavy Engineering Holdings Bhd , Kencana Petroleum and Ramunia Holdings Bhd to competition.
But the change would not apply to the bumiputra vendor programme, where companies controlled by ethnic Malays are given preference under a policy aimed at redistributing national wealth, The Edge said.
The move would be a departure from the current practice where Petronas only hands out jobs to licensed players in certain segments such as oil and gas equipment makers and offshore support vessel operators, the report said.
The liberalisation measure is aimed at drawing more foreign investment to develop Malaysia as a regional energy hub, it added.
Petronas was not immediately available for comment.
The move would expose local energy services companies such as Malaysia Marine and Heavy Engineering Holdings Bhd , Kencana Petroleum and Ramunia Holdings Bhd to competition.
But the change would not apply to the bumiputra vendor programme, where companies controlled by ethnic Malays are given preference under a policy aimed at redistributing national wealth, The Edge said.
Thursday, 20 October 2011
MMHE to Fabricate Topsides and Jackets for Exxon's Project, Offshore Malaysia
ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI), a subsidiary of Exxon Mobil Corporation, has signed a RM236 million contract with Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) to fabricate facilities for the Telok Gas development project in offshore Terengganu.
Its chairman and president Hugh W. Thompson said MMHE will fabricate and construct the topsides and platform jackets for the project operated by ExxonMobil.
“The project will involve installation of two gas satellite platforms, Telok A and B, tied back to the existing Guntong gas hub and the installation of facilities is planned to commence in the third quater of 2012,” he said in his speech at the contract signing ceremony here today.
He said 14 development wells are planned in the project which is expected to start in the first quarter of 2013.
”This will provide additional supplies for Malaysia’s power and industrial needs and also help promote the overall growth of the natural gas sector,” he added.
Thompson said an estimated 1,400 workers will be involved in various aspects of the fabrication, project management and support services at the yard and at the site and main offices.
“The fabrication work will take appoximately 18 months and during this period, we expect that the presence of the large project workforce will also be contributing towards the local economy,” he said.
At the ceremony Thompson represented EMEPMI while MMHE was represented by its managing director-cum-chief executive officer Dominique De Soras.
De Soras in his speech said the project comprises two topsides and two corresponding jackets supporting the platforms.
“The topsides, known as Telok A and Telok B, are unmanned facilities wellhead topsides with an estimated weight of 1,735 metric tonnes (MT) and 1,648 MT respectively.
“Both topsides are expected to produce 450 million standard cubic foot (MSCF) of gas per day in the Telok field offshore peninsular Malaysia (Terengganu),” he added.
Its chairman and president Hugh W. Thompson said MMHE will fabricate and construct the topsides and platform jackets for the project operated by ExxonMobil.
“The project will involve installation of two gas satellite platforms, Telok A and B, tied back to the existing Guntong gas hub and the installation of facilities is planned to commence in the third quater of 2012,” he said in his speech at the contract signing ceremony here today.
He said 14 development wells are planned in the project which is expected to start in the first quarter of 2013.
”This will provide additional supplies for Malaysia’s power and industrial needs and also help promote the overall growth of the natural gas sector,” he added.
Thompson said an estimated 1,400 workers will be involved in various aspects of the fabrication, project management and support services at the yard and at the site and main offices.
“The fabrication work will take appoximately 18 months and during this period, we expect that the presence of the large project workforce will also be contributing towards the local economy,” he said.
At the ceremony Thompson represented EMEPMI while MMHE was represented by its managing director-cum-chief executive officer Dominique De Soras.
De Soras in his speech said the project comprises two topsides and two corresponding jackets supporting the platforms.
“The topsides, known as Telok A and Telok B, are unmanned facilities wellhead topsides with an estimated weight of 1,735 metric tonnes (MT) and 1,648 MT respectively.
“Both topsides are expected to produce 450 million standard cubic foot (MSCF) of gas per day in the Telok field offshore peninsular Malaysia (Terengganu),” he added.
CSWIP Welding Inspector 3.1 course at Shah Alam
Date :
14 ~ 18 November 2011
Time:
9.00am ~ 5.00pm
Exam date:
21 November 2011
Location:
ANGKASA TRAINING CENTER
JALAN TENGKU AMPUAN ZABEDAH
K9/9 SEC 9
40100 SHAH ALAM SELANGOR
(Behind Concorde Hotel)
Course fee & exam (initial) :
RM5,000 only
Lecturer :
From TWI
Please feel free to email us at duniandt@yahoo.com.my for further clarification.
Many thanks & best regards
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