According to the 9MP report launched today, while efficiency in the utilisation of energy resources and wastage minimisation would be encouraged, emphasis would be given to further reduce the dependency on petroleum products by increasing the use of alternative fuels and to promote the use renewable energy.

As such, the development and utilisation of Renewable Energy (RE) would be further intensified in the 9MP. New sources of energy such as solar, wind and hydrogen will be developed as well as the development of biofuel using palm oil in the transport sector.

The energy sector would continue to focus on sustainable development to enable it to support economic growth, enhance competitiveness and contribute towards achieving balanced development.

The focus would also be on energy efficiency initiatives, particularly in the industrial, transport and commercial sectors as well as in government buildings.

On the other hand, rural electricity coverage in Sabah and Sarawak would also be improved and expended. By the end of the 9MP, rural electricity coverage in both states is expected to increase to 80.6 percent and 89.6 percent respectively.

The overall demand is expected to increase at an average rate of 6.3 percent per annum during the 9MP to 2,218 PJ in 2010, due to higher Gross Domestic Product (GDP) growth, expected for the period.

Deepwater areas

The transport and industrial sectors would continue to be the major energy consumers during the 9MP, constituting 41.1 percent and 38.8 percent of the total energy demand in 2010, due to increased demand for transportation services by the manufacturing and agricultural sectors as well as the tourism industry.

To ensure a sustainable supply of oil and gas, the report said, appraisal wells would continue to be drilled in small oil fields offshore and in deepwater areas, especially in Sabah and Sarawak.

At the same time, continuos efforts would also be undertaken to attract international oil companies to invest in exploration activities, particularly in deepwater areas to increase domestic petroleum reserves.

In addition, collaboration with production sharing contractors would continue to be undertaken to identity opportunities to maximise reserves recovery.

Under the 9MP, crude oil production level is expected to average at 695,000 barrels per day (bpd). Under the Eight Malaysia Plan, the average production of domestic crude oil increased from 681,000 bpd in 2000 to 727,000 bpd in 2005. The export of crude oil and condensate, increased to 369,000 bpd with a value of RM28.5 billion in 2005.

Petronas would also continue to review its international upstream and downstream operations to meet challenges in the global oil market besides intensifying efforts to secure more reserves and increase production from its offshore investments.

Petronas is expected to invest a total of RM43.8 billion in the 9MP. Of this, RM13.1 billion or 30 percent will be expended on oil and gas exploration as well as on development and production activities to enhance the long-term supply of oil and gas.

The balance of RM30.7 billion would be utilised to upgrade the oil and gas supply infrastructure, increase the number of service stations as well as expand the petrochemical industry.

High dependance

Meanwhile, the peak demand for electricity is expected to grow at an average rate of 7.8 percent per annum and would 20,087 MW in 2010. By the end of the 9MP, the accumulated installed capacity is expected to increase to 25,258 MW.

In line with the strategy to ensure security and reliability of electricity supply as well as reduce the high dependence on gas, the sources of fuel for power generation was further be diversified with the increased use of coal. In this regard, two coal-based plants were installed.

The consumption of coal for power generation and industrial use is expected to reach 19.0 million tonnes and 2.2 million tonnes respectively in 2010.

As part of efforts to promote the optimal utilisation of municipal waste for electricity generation, a pilot project on waste-to-energy will be implemented in Peninsular Malaysia.

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