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malaysia
CHAPTER 1.  
  GENERAL COUNTRY OVERVIEW  
    Malaysia is a tropical country which is situated about 7 degrees north of the Equator in the heart of Southeast Asia. Malaysia is divided into West Malaysia (Peninsular Malaysia) and East Malaysia (Sabah and Sarawak). Total land area for the Malaysia is 329,733 kilometers square. The Malaysian population is about 26 million people come from multi racial ethnics. The main ethnics in Malaysia are Malay, Chinese and Indian. The capital of Malaysia is Kuala Lumpur and the administrative building for Malaysia had been relocated from Kuala Lumpur to new township called Putrajaya. Malaysia comprises 13 states and three federal territories – Kuala Lumpur, Putra Jaya and Labuan. Malaysia gained independence from the British on August 31, 1957. Its also one of the members of the Association of Southeast Asian Nations (ASEAN).

Malaysia’s economy was once exclusively based on agricultural commodities. In 19th century, Malaysia start to introduce the “ Dasar Pandang ke Timur or Look East Policy” in trying to become a develop nation/industrial country such as Japan and Korea without sacrificed the agriculture industry.

Currently Malaysia is among the world’s largest producer of rubber and palm oil. Other major products include petroleum, timber and pepper. The government is steadily shifting the economy to manufacturing and service based.

 
    1.0. ENERGY SITUATION IN MALAYSIA
    Like many other developing countries, energy has been the main contributor for the rapid growth of the Malaysian economy. With the population increase as well as more buying power of the people and the country, thus the need for more energy whether for the living, transportation and industrial uses will also be increased subsequently. A lot of efforts have been undertaken to ensure greater security and sustainability of energy supply and not much being look into the energy efficiency particularly in developing country.

Malaysia’s endowed with an abundance of domestic energy resources particularly oil and gas. Besides that coal as well as biomass also contributes a significant amount of energy usage in Malaysia. With the increase in economic growth as well as socio economic, the demand for the energy has also been increased to sustain the progress and development of the country. A plan and action has been put into short terms as well as long terms in order to ensure the energy security and sustainability of the energy supply for the sake of nation development.
Figure 1

Figure 1: Trends in GDP, Primary Energy Supply and Energy Demand from 1990 to 2005

 


    1.1 Energy Resources
   

Malaysia has a good blend of energy resources and supply which come in the form of oil, natural gas, coal and renewable energies such as biomass, solar, wind and electric hydro. In 2007, the production of crude oil is 554.5 thousand barrel per day and the reserves were estimated at 4.316 billion barrels. The natural gas reserves were at 88.9 trillion standard cubic feet (Tscf) whereas the coal was just less than 1200 million tonnes. With the current oil and gas reserves, these two resources are presumed to be able to sustain for another 18 years and 36 years respectively. Table 1 below shows the production and reserves of crude oil and table 2 is the production and reserves of Natural Gas as of January 2007 respectively.

Table 1 : Production and reserves of crude oil 2007

Region Production
(‘000 barrels/day)
Reserves
(billion barrels)
Peninsular Malaysia 323.8 1.452
Sabah 74.6 1.979
Sarawak 156.2 0.889
Total 554.5 4.316

Table 2 : Production and reserves of Natural Gas

Region Production
(‘000,000 std cubic feet//day- Mscf/d)
Reserves
(Tscf)
Peninsular Malaysia 2,685.4 33.469
Sabah 292.11 11.598
Sarawak 3,768.43 43.858
Total 6,746.08 88.925

The total number of production fields for natural gas throughout Malaysia is 18 and the reserves are the total of associated gas and non associated gas.

Whereas for the coal, most of its production is Sarawak’s region. However there is a coal reserves in Sabah as well as small amount is measured in Peninsular Malaysia especially in Selangor state. Meanwhile, the primary supply of hydropower was slightly decrease to 1,510 ktoe in the year 2007

 

    1.2 Energy Supply and Demand
   

Due to rapid growing rate in industry and positive growth of various sectors in Malaysian economy, the commercial energy supply has increased to about 7.3 % to 63,296 in 2007 from previous year of 59,006 ktoe. While the final energy demand in 2007 also increase to 44,268 ktoe.

The main supply for the commercial energy is highest for natural gas at 43.2 % followed by petroleum products such as crude oil and others at 40.4%. Whereas the coal and hydropower contributed about 14 % and 2.4 % respectively. The energy consumption in the industrial sector is increase to 19,116 ktoe followed by the transportation sector at 15,717 ktoe.

The energy demand in 2007 is at 44,268ktoe compared to 40,318 ktoe in 2006. The main energy demand was highest from the industrial sector which was at 43.2 %, followed by the transport sector at 35.5%. Whereas the residential and commercial sector consumed about 14% and the rest used by non energy sector as well as agriculture sector. The largest portion of fuel consumed was petroleum product (56%), followed by natural gas (23%), electricity (17%) and coal (3%). Total demand for all fuel types showed an upward trend compared to year 2006.

The main supply of energy for electricity utility in Malaysia is Tenaga national Berhad (TNB) which having a customer or serving of over five million customer throughout The Peninsular Malaysia, Sabah and Sarawak. TNB has the largest generation capacity of more than 7,500 MW which accounts about 62% of total power generation in Peninsular Malaysia. Whereas in Sabah and Sarawak, there are a number of Independent Power Producers (IPPs) that also supplying electricity for that regions such as SESB and SESCo. Currently, most of the power plants utilized the natural gas as a fuel (56.6%) and coal fired plant (34.2%). Hydropower contributes about 6.9% of energy input in power plant whereas diesel and fuel oil are less than 2.3%. Table 3 below is the generation mix of electricity produce by TNB power plants.

Table 3 : Generation Mix (GWh) of TNB electricity for year 2005 and 2006

Resources/fuels type
Year 2005
(GWh
)
Year 2006
(GWh)
Hydro 4,908 5,301
Natural gas 18,569 21,293
Coal - -
MFO 5 111
Diesel - 41
Total 23,482 26,746

Most of the electricity supply in Malaysia is being used for the industrial sector followed by the commercial and domestic used. The industrial sector used more than 37,000 GWh for the 2006. While the commercial and domestic sectors used about 23,000 GWh and 14,000 GWh of electricity in 2006 respectively. The balance of electricity is being used for the public lighting, mining and other uses. Table 4 below shows a projection of the maximum energy demand in Malaysia

Table 4 : Projections of Maximum energy demand (MW) for Malaysia

Year
2000 2010 2020
Peninsular Malaysia 9726 18705 34760
Sabah 512 1087 2861
Sarawak 537 1078 2894
Total 10775 20870 40515
Source ; PTM EnergySmart June 2003

The final demand of the petroleum product in 2007 was 24,842 ktoe which comprising mainly of the transportation sector either diesel or petrol with the total share of demand of 38.3 % and 34.6 % respectively. This was followed by the demand of fuel oil at 8.9%, jet fuel and aviation gas at 8.7% and the rest of share is from LPG (5.9%), non energy (3.3%) and kerosene (0.3%).

 

 
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