Petronas plans to present the proposed revision of liquefied natural gas (LNG) prices to the government within two to three weeks, says its president/chief executive officer, Shamsul Azhar Abbas.

He said the company was currently working with Performance Management and Delivery Unit and Economic Planning Unit towards establishing market-based pricing.

NONE "The establishment of new LNG prices is critical for Petronas because the company cannot afford to subsidise them," Shamsul ( left ) told reporters after announcing the company's second-quarter results in Kuala Lumpur today.

As at Sept 30, 2010, total subsidies borne by Petronas for gas stood at RM10.22 billion.

Meanwhile, Petronas executive vice president, gas and power business, Datuk Anuar Ahmad, said gas demand in Malaysia was predominantly driven by the power sector. It's anticipated the some or all of the increase in costs will be passed on to the consumer.

He said fulfilling Peninsular Malaysia's gas demand on the back of tight supply remained a challenge for the company

- Bernama