I am sure that not many knows how much the cost is and would like to know more about it.
Another important issue is the different type of measurement used in NGV calculation.
Natural Gas is actually gas. Gas are normally measured in either volume (standard cubic feet (scf) or standard meter cube (smc)) or in unit energy which we normaly used British Thermal Unit or BTU.
Current market price of natural gas now is within US 8 dollars to US 15 dollars per mmBTU. The mm is referred to is million.
In UK, the price now, in winter, is at US 10/mmBTU. While in Japan it is US 15 /mmBTU.
These figures fluactuate between these ranges depending on the trading down on the futures market. This is similar to that of crude oil or palm oil or gold.
How do U calculate in Ringgit Malaysia?
If the exchange rate is US 1 = RM 3.35 then the price per mmBTU is RM33.5.
Now is the next difficult question, How do convert this to liter of NGV?
Frankly I do not know the direct answer however I use my sharp mathematic sense call extrapolation.
The goverment confirmed that they are selling to our IPP at RM6.40 per mmBTU which is equivalent to RM 0.21 per liter.
So if the world price is RM33.5 per mmBTU, the world price in liter should be (0.21/6.4)X (33.5) = RM 1.099 per liter.
What is the price of NGV we are paying at the Petrol station today? Yes 0.68 sen per liter.
The different between 1.099 minus .68 = 0.419 sen is being lost of opportunity by Petronas. This is due to the fact that if they sell the same gas to other countries they will make profit from it.
Petronas will say that they subsidies the different. I personally feel that it is lost of opportunity and not subsidy.
Now let us look at how much petrol is being subsidies. For each liter the Government is subsidising RM 1.01 sen.
So if U convert to NGV you actually save our Government a total of 1.01 - 0.419 = 0.591 per liter U purchased.
If there are 1,000,000 people using petrol switch to NGV, their saving per year is equivalent to: (1,000,000 cars)X (20,000/10) X 0.591 = 1,182,000,000. Yes 1.182 billion ringgit per year.
Note the 20,000 is the estimated kilometer each car will travell in a year and the per liter the car will be able to travel to 10 kilometer.
So the conclusion is that if U convert your car today to NGV you help to save lots for the Government plus U save your bill too !!!!
Sunday, December 16, 2007
Another Good Strategy By My YB
He seem to be very keen to move Petronas to put NGV as the most effective alternative fuel for the Raakyat.
On Sartuday 15th December 2007, he wrote a one page article on " NGV alternative atasi kenaikan harga petrol." in Harian Metro.
The article was in Bahasa and I cud not get them from the harian Metro website.
In this article he seem to laid down some of the basis why Petronas should give more attention to NGV for the rakyaat.
There are only 40,000 users after 23 years of implementation. The number of NGV filling stations (58 stations)is still very low causing long cues on almost all of Petronas Petrol stations with one or two dispensers installed. We should be looking at dedicated stations.
Other countries like Argentina, Brazil and Pakistan have surpass 1,000,000 vehicles while we have far away from home. Some started uning NGV just 8 years ago.
Malaysia have a huge gas reserves and producing about 2.06 billion scf and the amount used for NGV is less then 0.6% (30 million SCF).
The best points that I like to select is:
The natural gas belongs to the Raakyat. It is equivalent to drilling a water well at the back of our house and why can we offer the water to our neighbours free of charge? Is it wrong if we ask the gas to be returned to the Raakyat. We are just asking for 5% of the total amount produced by Petronas.
Just imagine if 1 million vehicle users switched to NGV. The move will save each user at least RM 2,300 a year. An the Government will save at least 16 billion a year.
In his conclusion is said: So what are we waiting for? All that we have is infront of our eyes, it is only our wish to implement or not to implement.
I guess this is another milestone to NGV implementation in Malaysia.
On Sartuday 15th December 2007, he wrote a one page article on " NGV alternative atasi kenaikan harga petrol." in Harian Metro.
The article was in Bahasa and I cud not get them from the harian Metro website.
In this article he seem to laid down some of the basis why Petronas should give more attention to NGV for the rakyaat.
There are only 40,000 users after 23 years of implementation. The number of NGV filling stations (58 stations)is still very low causing long cues on almost all of Petronas Petrol stations with one or two dispensers installed. We should be looking at dedicated stations.
Other countries like Argentina, Brazil and Pakistan have surpass 1,000,000 vehicles while we have far away from home. Some started uning NGV just 8 years ago.
Malaysia have a huge gas reserves and producing about 2.06 billion scf and the amount used for NGV is less then 0.6% (30 million SCF).
The best points that I like to select is:
The natural gas belongs to the Raakyat. It is equivalent to drilling a water well at the back of our house and why can we offer the water to our neighbours free of charge? Is it wrong if we ask the gas to be returned to the Raakyat. We are just asking for 5% of the total amount produced by Petronas.
Just imagine if 1 million vehicle users switched to NGV. The move will save each user at least RM 2,300 a year. An the Government will save at least 16 billion a year.
In his conclusion is said: So what are we waiting for? All that we have is infront of our eyes, it is only our wish to implement or not to implement.
I guess this is another milestone to NGV implementation in Malaysia.
YB Speaks Out On NGV In the Parliment.
I am delighted that my YB raise the NGV issue in the Parliment on last Wenesday.
He pointed out that if Petronas is not keen in developing the NGV for the Raakyat let a Public sector do them.
He was very focus and put Petronas on the defensive position.
He started with pointing out that Petronas is doing enought for the Raakyat on the NGV issue and the 200 stations promised by year 2008 is not materialising as promised.
This is like making the cabinet as a laughing stock where they will carry out the instruction under pressure and they will implement the instruction at their own pace.
After five minutes on the issue, his speach was seconded by Raja Ahmad of Perak. He too agreed with my YB that Petronas is so busy with their international activities that they ignored their responsibilities to the Raakyat. His recent trip to Indonesia, he saw many NGV stations being constructed but we in Malaysia is still having one miserable dispenser per station.
One thing for sure is that the speaches were recorded in the Parliment monitoring system , Hansard, and I hope there will be some follow up after this.
I feel good but what will be next ......
He pointed out that if Petronas is not keen in developing the NGV for the Raakyat let a Public sector do them.
He was very focus and put Petronas on the defensive position.
He started with pointing out that Petronas is doing enought for the Raakyat on the NGV issue and the 200 stations promised by year 2008 is not materialising as promised.
This is like making the cabinet as a laughing stock where they will carry out the instruction under pressure and they will implement the instruction at their own pace.
After five minutes on the issue, his speach was seconded by Raja Ahmad of Perak. He too agreed with my YB that Petronas is so busy with their international activities that they ignored their responsibilities to the Raakyat. His recent trip to Indonesia, he saw many NGV stations being constructed but we in Malaysia is still having one miserable dispenser per station.
One thing for sure is that the speaches were recorded in the Parliment monitoring system , Hansard, and I hope there will be some follow up after this.
I feel good but what will be next ......
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