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Energy Info Highlights 2004

Primary Energy Supply

In 2004, the primary supply of commercial energy grew only 1.9 percent compared to 7.5 percent during the previous year. The growth was motivated by higher production of natural gas at 57,768 kilotonnes of oil equivalent (ktoe), a increase of 9.0 percent from 53,010 ktoe in year 2003. The growth was mainly driven by increased demand from Korea Gas Corporation (KOGAS). With effect from October 2004 until April 2008, Malaysia will be supplying LNG to KOGAS up to the amount of 2.82 million tonnes. At a lesser rate, production of crude oil increased by a narrow margin of 2.7 percent from 37,026 ktoe in 2003 to 38,041 ktoe in 2004.

Despite a smaller margin in production, import of petroleum products registered a positive growth of 26.2 percent. The production of coal during year 2004 increased by more than 100 percent, but minimal in quantum as compared to other fossil fuels. Import of coal has consistently increased at the rate of 50 percent yearly since 2002. Coal import increased by 52.2 percent from 5,268 ktoe in 2003 to 8,019 ktoe in 2004. This is partly contributed by the higher level of stock taking activities.

In terms of total shares, crude oil and petroleum products shares reduced slightly from 49.7 percent in 2003 to 46.8 percent in 2004. The share of natural gas, increased to 38.8 percent from 38.5 percent during the same period. The share of coal and coke has increased from 9.8 percent to 12.0 percent, gaining more shares compared to the previous year. Hydro has also increased from 2.0 percent to 2.4 percent in 2004.

 

Secondary Supply of Energy

Since the commencement of the PETRONAS’s third LNG plant (MLNG) in Bintulu on March 2003, conversion of natural gas to Liquefied Natural Gas (LNG) has continuously increased. In year 2004, 22,944 ktoe of LNG was produced compared to 18,965 ktoe in 2003, an increase of 21.0 percent. As stated earlier, this was partly due to increased LNG sales to KOGAS. Total refineries output also increased, albeit by 1.9 percent in 2004, due to increase in production of diesel, motor petrol and fuel oil.

 

Electricity

Malaysia’s total installed capacity as of the end of 2004 was at 20,052.6 MW, lower by 0.3 percent from 20,118.7 MW in 2003. 91 percent of the installed capacity is located in Peninsular Malaysia, 5 percent in Sarawak with the remaining in Sabah. Electricity generation registered 89,098.4 GWh, an increase of 8.1 percent as compared to 82,406.1 GWh in 2003. The peak demand for Peninsular Malaysia was recorded at 12,023.0 MW, Sarawak at 686.4 MW with Sabah West Coast Grid at 318.0 MW and Sabah East Coast Grid at 168.0 MW

In terms of electricity generation mix, the share of natural gas as energy input in power stations has decreased to 59.4 percent compared to 65.3 percent in 2003. The share of coal, however, increased from 24.6 percent in 2003 to 30.0 percent in 2004. Hydro was next with its share at 7.5 percent while the remaining were fuel oil and diesel, at 1.5 percent each.

The total electricity consumption for Malaysia recorded a growth of 8.3 percent from 71,160.6 GWh in 2003 to 77,080.8 GWh in 2004. The growth in electricity demand was highest from the industrial sector at 10.7 percent, followed by residential sector at 8.4 percent, and commercial sector at 7.9 percent.

 

Final Demand of Commercial Energy

In 2004, total final energy demand was recorded at 37,322 ktoe, an increase of 7.9 percent compared to 3.9 percent in 2003 due to increasing demand from all sectors, especially the transport and industrial sectors. The transportation sector remains the leading consumer of final energy accounting for 41.2 percent after registering an increased growth of 7.8 percent. The share of the industrial sector also increased to 40.0 percent after recording a 10.7 percent growth from the previous year. The growth was largely contributed by the manufacturing activity, which was supported by increase in exports and strong domestic demand. The share of both residential and commercial sectors remained about 13 percent during the same period.

Analysis on the demand by fuel type showed petroleum products increased marginally from 61.2 percent in 2003 to 61.3 percent in 2004. Of this share, motor petrol and diesel were the major contributors at around 34.3 percent and 40.5 percent respectively. The share of natural gas increased slightly to 17.3 percent while the share of electricity reduced to 17.8 percent in 2004 from 18.3 percent in year 2003.

 

 

Conclusion

Overall, the growth in the energy sector has been driven by both supply and demand factors. The supply growth was driven by two major factors, namely, the increased LNG demand and higher import level of coal for coal power plant.

On the demand side, almost all sectors exhibited growth in their consumption of energy for the year 2004, with the industrial and transportation sectors making their mark, due to the strong growth of the manufacturing and construction activities. These developments have contributed towards the expansion of the Malaysian energy sector.

 

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