KUALA LUMPUR (Feb 28): TENAGA NASIONAL BHD [] expects to perform better in the second quarter ended Feb 29, 2012 as it would receive RM2 billion compensation from Petroliam Nasional Bhd and the government as part of a fuel cost sharing mechanism.
Its president and CEO Datuk Seri Che Khalib Mohamad Noh added that the gas supply has improved compared to a year earlier.
"The gas supply is better now thanks to Petronas. They have been giving us an average of 1,100 mmscfd. However we still need to burn distillates from time to time," he said on Tuesday.
The RM2 billion compensation is part of a fuel cost sharing mechanism equally shared by TNB, Petronas and the government to bear the RM3.07 billion cost to burn distillates as an alternative fuel from Jan 1, 2010 to Oct 31, 2011. TNB had to burn distillates to generate electricity due to shortage of gas supply from Petronas.
Che Khalib said TNB had to incur losses of RM400 million every month to burn distillates during the period.
"We still had to burn distillates in November and Dec. We will discuss with the government on what we want to do with that," he said.
Its president and CEO Datuk Seri Che Khalib Mohamad Noh added that the gas supply has improved compared to a year earlier.
"The gas supply is better now thanks to Petronas. They have been giving us an average of 1,100 mmscfd. However we still need to burn distillates from time to time," he said on Tuesday.
The RM2 billion compensation is part of a fuel cost sharing mechanism equally shared by TNB, Petronas and the government to bear the RM3.07 billion cost to burn distillates as an alternative fuel from Jan 1, 2010 to Oct 31, 2011. TNB had to burn distillates to generate electricity due to shortage of gas supply from Petronas.
Che Khalib said TNB had to incur losses of RM400 million every month to burn distillates during the period.
"We still had to burn distillates in November and Dec. We will discuss with the government on what we want to do with that," he said.
