Malaysian Iron and Steel Industry Federation calls for 3 year moratorium on natural gas price

Bernama reported that the Malaysian Iron and Steel Industry Federation (Misif) has called for the government to consider a moratorium to maintain natural gas price at RM32.52 per one million British thermal unit (mmBtu) for a period of at least three years. It said “The government should take heed of special tariff arrangements on the energy needs of the domestic iron and steel industry, it said in a statement today.

It said this in response to the new rate for natural gas as announced by Gas Malaysia Bhd on June 13, 2018.

Gas Malaysia said the effective average natural gas base tariff will be revised upwards by RM0.17 per mmBtu or 0.52 per cent from RM32.52 per mmBtu to RM32.69 mmBtu for the non-power sector, including steel producers, in Peninsular Malaysia from July 1, 2018 to Dec 31, 2018. The new rate is inclusive of a surcharge of RM0.77 per mmBtu under the Gas Cost Pass-Through (GCPT) mechanism applied to all tariff categories due to the higher liquefied natural gas price against the reference price in the base tariff during this period.
Source : BERNAMA
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