Govt looking into alternative energy sources if Mideast crisis persists

 Deputy prime minister Fadillah Yusof says Australia and other Asia-Pacific nations are being weighed as possible suppliers.

Deputy prime minister Fadillah Yusof said Petronas has contingency plans to ensure Malaysia’s energy supply remains stable despite the conflict in the Middle East. (Bernama pic)

PETALING JAYA:

 The government has started looking to other nations as possible energy suppliers if the Middle East conflict persists and the Strait of Hormuz remains closed, says deputy prime minister Fadillah Yusof.

Fadillah said Petronas has contingency plans to ensure Malaysia’s energy supply remained stable despite the conflict, with Australia and other Asia-Pacific nations being weighed as possible alternative suppliers.

“Petronas has looked at various plans to find alternative supplies if gas or oil cannot be delivered through areas affected by the conflict.

“All these alternatives are being prepared and, so far, the planning is progressing well and our supply remains stable,” Fadillah, who is also the energy transition and water transformation minister said, according to Borneo Post.

The Strait of Hormuz, through which 20% of the world’s oil and gas normally flows, has been closed by Iran after it was hit by US-Israel airstrikes earlier this month, leading to crude oil surging to around US$100 per barrel.

In the past two weeks, Putrajaya raised the price of RON97, non-subsidised RON95 and diesel in West Malaysia by RM1.30, 60 sen and RM1.60, respectively.

However, the government is continuing to subsidise RON95 for eligible Malaysians and diesel in East Malaysia, a move estimated to cost the Treasury RM3.2 billion a month, up from RM700 million previously.

Earlier today, Prime Minister Anwar Ibrahim said Malaysia remained a net oil importer while nearly 50% of the country’s supply of oil passes through the strait. - FMT