TNB Fuel to set ceiling price for coal purchases
Monday, April 28 2003 - 08:05 AM WIB
"The company will float a coal supply tender by July this year, and is in the midst of evaluating the quantum needed and the prices," the source told Mail Money.
The contract for the coal supply is an effort by Tenaga to reduce its dependence on natural gas by using more coal as fuel in its power production.
"Tenaga is working towards reducing its dependence on natural gas by as much as 20 per cent by 2006. It will use more coal as fuel in power production," the source said.
With Tenaga's move to produce more coal-generated power, the Government expects coal usage to increase to 30 per cent by 2006, with natural gas dropping to 61 per cent.
The Government plans to build more coal-fired power plants throughout the country because coal is cheap and easily available.
Currently, Malaysia has two coal-fired power plants in Klang and Janamanjung, Perak. A third plant will be constructed in Johor and preliminary works are scheduled to begin soon on the project site at Tanjung Bin.
The construction of a fourth plant is already in the advance planning stage. The plant, to be built in Negri Sembilan, will only have a 1,400MW capacity.
Besides buying locally-mined coal, TNB Fuel Services is also expected to buy coal from countries such as China, South Africa, Australia and Indonesia, the source said. (*)