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| Energy | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q1
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: |
What
is the status of Bakun Hydroelectric Project? |
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The Bakun
Hydroelectric Project is being implemented with an installed generating
capacity of 2,400MW. The project is expected to commence operation in
2007/2008 and the electricity generated will be supplied to Sarawak and
Sabah. The project is currently managed by Sarawak Hidro Sdn. Bhd., which
is an MOF Inc. company. |
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Q2 |
: |
How
is the electricity supply situation in the country?
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The
electricity generation capacity in the medium term is more than adequate
to meet the demand of consumers. To enable a more effective utilization
of resources, the reserve margin will be reduced gradually to 20% in
the longer term. The focus will be on phased implementation of committed
power generation projects as well as impozing a freeze on approvals
for future independent power producers (IPPs). |
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Q3 |
: | Will
the rural electrification programme be continued?
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Rural
electrification programme, especially in Sabah and Sarawak will continue
to be implemented. In this regard, the rural electricity coverage for
Sabah and Sarawak are expected to increase to 72.8% and 80.8%, respectively
in 2005. Meanwhile, the rural electricity coverage for Peninsular Malaysia
is expected to achieve 98.6% |
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Q4 |
: |
What is the legislative framework that regulates the development of
oil and gas industry in Malaysia?
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The
Government has enacted two main acts to promote and regulate the development
of oil and gas industry in Malaysia; namely: (a) Petroleum Development
Act (PDA) 1974, and (b) Gas Supply Act 1993. |
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Petroleum
Development Act, 1974 |
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The
Petroleum Development Act, 1974 came into force on 1 October 1974. The
purpose of the Act is to regulate the petroleum and petrochemical industries.
The power to regulate all activities in the upstream petroleum sector
is vested in the Petroliam Nasional Berhad or PETRONAS. The Petroleum
Regulations 1974, which were amended on 14 January 1991, vested powers
to the Ministry of Domestic Trade and Consumer Affairs and the Ministry
of International Trade and Industry (MITI) to regulate all activities
in the downstream sector of the petroleum industry. |
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The
Ministry of Domestic Trade and Consumer Affairs have been given the
powers to issue licenses for the marketing and the distribution of petroleum
and petrochemical products. The Ministry of Domestic Trade and Consumer
Affairs is in charge of the rules and regulation for:- |
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commencement
or continuation of any business of processing or refining of petroleum
or manufacturing of petrochemical products from petroleum; |
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commencement or continuation
of any business of marketing or distributing of petroleum or petrochemical
products; and |
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prices of certain petroleum products such as petrol and diesel. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MITI has been
vested with the powers to issue licenses for the processing and refining
of petroleum as well as the manufacture of petrochemical products. |
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In addition,
the Petroleum (Income Tax) Act 1967 was amended in 1976 to bring the structure
in line with the production sharing contracts signed between PETRONAS
and the various oil companies. Effective from the year of assessment 1998,
income tax on the petroleum industry was reduced from 40% to 38% while
the export duty for crude oil and condensate was reduced from 20% to 10%
with effect from 1 January 1998. |
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| Gas Supply Act, 1993 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Gas Supply
Act 1993 was gazetted on 4 February 1993 to safeguard the interests of
consumers supplied with gas through pipelines and from storage tanks or
cylinders specifically used for reticulation of gas. Gas was reticulated
to commercial and industrial outlets as well as residential consumers. |
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The Gas Supply
Act 1993 came into effect simultaneously with the gazetting of the Gas
Supply Regulations 1997 on 17 July 1997. The Regulations include procedures
for the issuance of a license to supply, installation of gas pipelines,
inspection, tests and maintenance of gas installations as well as the
certification and registration of competent persons to undertake the relevant
work in such a manner as to ensure public safety. |
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With the gazetting
of the Gas Supply Act 1993, the relevant sections in the Petroleum Development
Act 1974 pertaining to the gas reticulation process have also been amended
to prevent duplications between the two Acts. This is to ensure that all
gas reticulation and related transmission and supply activities will be
conducted in accordance with the Gas Supply Regulations 1997. The Gas
Supply Act 1993 was amended in September 2001 and the Energy Commission
was established to replace the Department of the Electricity and Gas Supply.
The Energy Commission, among others, is responsible for the gas reticulation
industry. |
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