PETRONAS could find long-term gas buyers in data centre sector
Dedicated gas-fired generation could complement solar and grid supplies, with potential sales priced at market rates rather than subsidised.
Data centres could become longer-term gas customers for PETRONAS through power generation dedicated to their operations, Minister of Investment, Trade and Industry Datuk Seri Johari Abdul Ghani said on Nov 10. He said the potential business would involve market pricing, not subsidised energy.
Addressing an event at Bursa Malaysia, Johari suggested examining gas supplies for dedicated generation, complemented by solar and other energy sources. This would offer an alternative to drawing all electricity from the national grid and create another domestic outlet for Malaysia's gas industry, he said.
Johari said any move to direct gas towards domestic electricity production must take account of export commitments and domestic requirements. Given finite gas resources, supply pricing would need to be transparent and consider market conditions. He said existing long-term export contracts would be honoured, along with infrastructure policy.
He added that longer supply agreements could give producers a clearer view of future demand while helping operators obtain power. Higher electricity needs could also support spending on generation, battery energy storage and grid infrastructure.
Tenaga Nasional Bhd supplies electricity to 36 data centres, while dozens of further facilities are planned. The government wants investors to fund transmission upgrades needed for their projects instead of passing those costs to locals. Operators would face charges for their committed capacity even when usage falls short of that commitment, preventing capacity from being reserved without compensation.
