My Anthem

Wednesday, September 19, 2007

Lots of bullshit and gas pissing somewhere (2)

My Post yesterday remains unfinished, and yet another leader gives us more bullshit...

I hope my ER
would help YL Chong out if you can retrieve from your Archives or Memory Bank (badder than Desi's wan, I presume!) some news item going back a year (?) featuring Petronas boss signing a huge contract-signing -- on behalf of Petronas Gas with a Japanese conglomerate involving forward sales maybe. If my recall of the gist was correct, then we will be able to tell some leaders, including ministers, in cahoots with Petronas officials, are taking the Malaysian citizenry for a ride. Maybe they will ride us into the sunset when the oil and gas run out in another 15 years time? Someone bigshot has already warned recently Malaysia would become a net importer of petroleum in 2011 ... (need to check the year, but it's just a few years away!)

Email me anything useful to expose the Petronas' monies -- where have all the billions gone?

Meanwhile, I'm still blogging on the chicken run trying to finalise a Saturday event in FUR'ong; jest watch out for the official announcement tomorrow, can! Desi will be blowing some trumpet tomolo if ipohlang hoRst of brings some sweet pomelo! She blew some flying kisses for Dr Maverick Yeoh at Hi-Tea at Jaya 24 before. Mayhaps cometh this Saturday if another Sertemban(K)night called Anak Merdeka makes her debut, we and the musketeers may yet party yet. If you top it up by signing up as PKR members, Desi won't complain-lah, will contiue to offer thee the bestA of Haridas' tehtarik.

From NST, page 2, in the famous/notorious vein of his advice to Malaysians to tighten their belts --(NO, definitely not the UMNO, MCA and MIC politikus'!) -- the DPM goives us aMore of the same madsin!~~~


Najib: Adjust spending to cope with price hike

PUTRAJAYA: Malaysians will have to face the reality that the prices of some goods, including foods, are on the increase.

The people will have to make adjustments to their spending to cushion the impact of global price trends, Datuk Seri Najib Razak said.

The deputy prime minister, however, reiterated that the government would honour its pledge not to increase the petrol price this year.

In the wake of rising world oil prices, which have reached record levels at over US$80 (RM280) a barrel, the government could not offer the same guarantee for the price of gas, he said.

Petronas is pushing for an increase in gas charges after shouldering billions of ringgit in subsidies for over a decade. A special committee is due to discuss the proposal by the national oil company next week.

"The government is aware of all these developments and we have been protecting the people's interest. In fact, the petroleum and gas subsidies the government has to bear this year alone is RM14 billion and RM13 billion respectively."

"The government is doing whatever we can to protect consumers but world prices are moving against us," he said to questions on the steadily increasing consumer goods prices as reported in the media yesterday.

On actions that could be taken to reduce the burden on consumers, Najib, who chairs the Cabinet Committee on Essential Goods, said the government had helped consumers by capping the price of various commodities.

"But there comes a point where fixing a price that is not realistic will result in a shortage of supplies.

"We just have to manage the situation as best as we can," he said.

The deputy prime minister also said the National Forestry Act would soon be amended to curb illegal logging by shifting the "burden of proof" in the sourcing of timber to loggers.

He said it was difficult currently for authorities to prove charges of illegal logging against sophisticated organised syndicates.

"With this amendment, if they fail to furnish proof of their source of logs, they will be in trouble," Najib said after chairing a meeting of the Cabinet Committee on Forestry here yesterday.

Also present at the meeting was Natural Resources and Environment Minister Datuk Seri Azmi Khalid, who will propose the amendment to the committee before submission to the cabinet for approval.

Najib also said the ministry would continue using technologies, including remote sensing, to detect the illegal clearing of forests by loggers.

He also said cases of illegal logging in permanent forest reserves last year spiked at 59 cases compared with 45 in 2005.

From 2004 until last year, 292 cases of illegal logging were also recorded on government forest land.

Najib said the committee viewed the issue very seriously as the impact of illegal logging was multi-dimensional.

"It disrupts our sound environmental management policies, contributes to global warming, paints a negative image of the country and creates transboundary problems," Najib said.


And from The Star business section, the omen is sounded:

Wednesday September 19, 2007

Increase in gas price is imminent, says brokerage

PETALING JAYA: A hike in gas price is imminent although there are questions over the quantum of the increase.

According to Aseambankers, there had been speculation that the Government would allow a 15% increase in the price of gas for industrial use.

It is understood that industrial users, except Tenaga Nasional Bhd (TNB), are currently charged about RM13 per million British thermal units (mmBtu). With a 15% increase, the price is likely to go up to RM15 per mmBtu.

“The current price was fixed in July 2002. Our initial survey of some industrial users suggests that this potential increase is anticipated, given the rising price of gas globally,” Aseambankers said, adding that unsubsidised gas now costs about RM40 per mmBtu.

Petroliam Nasional Bhd (Petronas) sells subsidised gas to TNB and independent power producers (IPPs) at RM6.40 per mmBtu, which was fixed in May 1997.

Earlier this week, Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik was reported as saying that a Cabinet committee chaired by the Prime Minister would decide on Monday the next gas policy and gas prices for TNB and IPPs.

In July, International Trade and Industry Minister Datuk Seri Rafidah Aziz said the Government wanted a thorough review of the gas industry to ensure that it was not heavily subsidised. It also wanted gas to be utilised more efficiently.

Aseambankers, in a note yesterday, said food and beverage operators and rubber manufacturers were more likely to be affected since they were major consumers of natural gas.

A monorail system speeds past the Petronas Twin Towers. The national oil company’s cumulative subsidy since 1997 amounts to RM58.2bil, of which RM48.8bil was to the power sector and RM9.4bil to the non-power sector – AFP
“Based on our sensitivity analysis, we conclude that a 15% gas price hike will have minimal impact on the earnings of (companies such as) Kossan Rubber Industries Bhd and Top Glove Corp Bhd. It is 1% at most, assuming that glove makers absorb the hike in gas costs.

“The earnings effect will be neutralised should they pass on the costs to clients,” the brokerage added.

OSK Research Sdn Bhd analyst Tursina Yaacob said the current gas price was “significantly below'' the international price as well as below the price that Petronas paid for imported gas.

“(The effect will ) most likely (kick in) in the second half of next year,” she told StarBiz.

Lim assured that despite TNB's and the IPPs' heavy reliance on gas, there would be no increase in electricity tariffs.

Tursina said an increase in gas price without a raise in electricity tariffs did not bode well for TNB.

“We estimate that a 1% increase in gas price would reduce TNB's earnings per share by 0.6%,” she said.

The IPPs would not be affected by the adjustment in gas price as their power purchase agreements with TNB stipulate that any changes in fuel price would be borne by TNB and there was no pass through clause for the IPPs, Tursina added.

A filepic shows TNB’s transmission grid. An industry observer says a sharp increase in gas price would jeopardise TNB as the group's entire costing would shoot up tremendously
Petronas' cumulative subsidy since 1997 amount to RM58.2bil, of which RM48.8bil was to the power sector and RM9.4bil to the non-power sector.

For financial year ended March 31, Petronas' gas subsidy totalled RM15.6bil, up 9.1% from RM14.3bil in 2006.

DESIDERATA's temporary knotty short comment, can?

How long will Malaysian Voters continue to be masochistic to themselves when they head for the polling booths cometh the next General Elections, expected to be very soon, definitely before mid-April, 2008 as the Government does not wish to see former DPM Anwar Ibrahim contest. (His five-year time-bar for political participation sends April 15, 2008.)

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