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MALAYSIA August 2017 COUNTRY ENERGY REPORT

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Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 1

Table of contents

Table of contents ________________________________ 1

List of graphs &tables ____________________________ 2

Overview ______________________________________ 3

Institutions and energy policy ______________________ 5

Energy companies ______________________________ 10

Energy supply _________________________________ 14

Energy prices __________________________________ 19

Energy consumption ____________________________ 21

Issues and prospects ____________________________ 24

Graphs & data files ___________________________ 27

Abbreviations ________________________________ 30

Glossary ____________________________________ 32

2 Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

List of graphs &tables

List of graphs

GRAPH 1: CO2-energy emissions (MtCO2) -------------------------------------------------------------------------------------------------------------------------- 9

GRAPH 2: Installed electric capacity by source (2016, %) ---------------------------------------------------------------------------------------------------- 15

GRAPH 3: Gross power production by source (TWh)---------------------------------------------------------------------------------------------------------- 15

GRAPH 4: Power generation by source (2016, %) -------------------------------------------------------------------------------------------------------------- 16

GRAPH 5: Map of natural gas infrastructure --------------------------------------------------------------------------------------------------------------------- 18

GRAPH 6: Gasoline & diesel prices (US$/l)------------------------------------------------------------------------------------------------------------------------ 19

GRAPH 7: Electricity prices for industry and households (US$c/kWh) ----------------------------------------------------------------------------------- 20

GRAPH 8: Consumption trends by energy source (Mtoe) --------------------------------------------------------------------------------------------------- 21

GRAPH 9: Total consumption market share by energy (2016, %) ----------------------------------------------------------------------------------------- 22

GRAPH 10: Final consumption market share by sector (2016, %) -------------------------------------------------------------------------------------- 23

List of tables

Table 1: Economic indicators

• Population, GDP growth

• Imports & exports

• Inflation rate, exchange rate

• Energy security and efficiency indicators

• CO2 emissions

Table 2: Supply indicators

• Oil & Gas proven reserves

• Electric & refining capacity detailed by source

• Production by energy source

• Power production by source

• External trade by energy source

Table 3: Demand indicators

• Consumption / inhabitant and consumption trends

• Total consumption by energy source

• Final consumption by energy source and by sector

• Electricity consumption by sector

Table 4: Energy Balance

• Total energy balance

• Detailed energy balance by energy source

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 3

Overview

Map source: OCHA/ReliefWeb

Highlights

In moving towards a greener Malaysia, the Government is taking steps to encourage energy efficiency and low-

carbon energies.

State-owned Petronas and TNB remain the dominant companies in their respective fields.

Malaysia remains one of the top energy suppliers in Southeast Asia, although it still has a strong energy potential

to be exploited.

With the recent drop in oil prices, the Malaysian Government took the opportunity to remove fuel subsidies,

resulting in market-based price adjustments.

Energy consumption is increasing very rapidly. The share of oil in final energy consumption is decreasing,

whereas the share of electricity and gas is increasing.

Malaysia expects to become a regional leader through large investments in the oil and gas sector.

4 Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

3rd largest LNG exporter in the world

+5.7%/yr electricity consumption growth over 2000-2016

13% share of renewables in the power capacity in 2030

Table 1 : Economic Indicators

1990 2000 2014 2015 2016

Population million 18.2 23.4 29.9 30.4 30.8

GDP growth rate %/year 9.0 8.9 6.0 5.0 4.3

GDP/capita US $ 2 417 4 005 11 307 10 003 10 183

Inflation Rate %/year 2.6 1.5 3.1 2.1 2.1

Exchange rate lc/$ 2.7 3.8 3.3 3.9 4.1 Sources : World Bank , IMF

Energy security 1990 2000 2014 2015 2016

Energy independence rate % 100 100 100 100 100

Share of oil imported(+) exported(-) % -155 -55 16 8 1

Energy efficiency 1990 2000 2014 2015 2016

Total consumption/GDP * koe/$05 0.129 0.146 0.139 0.130 0.132

Total consumption/GDP * 2005=100 81.9 92.7 88.1 82.5 84.1

Rate of T&D power losses % 9.5 8.3 6.1 6.1 5.3

Efficiency of thermal power plants % 31.7 36.8 35.6 35.6 35.6

CO2 emissions 1990 2000 2014 2015 2016

CO2 emissions/GDP * kCO2/$05p 0.294 0.348 0.348 0.324 0.333

CO2 emissions/capita tCO2/cap. 2.7 5.0 7.6 7.3 7.7* at purchasing power parity

Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 5

Institutions and energy policy

In moving towards a greener Malaysia, the Government is taking steps to encourage energy efficiency and low- carbon energies.

The Economic Planning Unit (EPU), a powerful planning body under the

supervision of the Prime Minister, drafts the country’s energy policy through its

energy division (Energy Section). Decisions are taken by a restricted council of

ministers, the “Cabinet Committee on Energy”.

An independent authority, the Energy Commission (“Suruhanjaya Tenaga”),

has regulated the electricity sector and the piped gas supply industry since

2001. It is in charge of supervising the sector and granting exploitation licences,

a task which was previously carried out by the Ministry of Energy,

Communication and Multimedia.

The Ministry of Energy, Green Technology and Water (KeTTHA) implements

the energy policy for the electricity sector, renewables and energy

conservation.

GreenTech Malaysia, formerly known as Pusat Tenaga Malaysia (PTM; Energy

Centre in English), is a public research centre on energy, created in 1998 by the

Ministry of Energy. It plays an active role in the promotion of energy efficiency

and renewables, planning and R&D.

The main objectives of the energy policy are defined in the 11th Malaysia Plan,

2016-2020. The plan focuses on four key areas: conserving natural resources to

improve energy security, sustainable consumption and production by

increasing the share of renewables and other measures, strengthening the

enabling environment for green growth, and enhancing the climate change

adaptation plan.

The Economic Transformation Programme (ETP) aims to make Malaysia a

developed country by 2020. Under this plan, the oil and gas sector is among

the 12 National Key Economic Areas (NKEAs) selected by the Government to

generate income to support the targeted growth. The oil, gas and energy

sector has been a mainstay of Malaysia's growth and contributes

approximately 20% of GDP. The policy goal is to strengthen a competitive

market and to phase out energy subsidies in stages.

Economic Transformation Programme (2010): targets for 2020 will be

achieved through the implementation of 12 National

Key Economic Areas (NKEAs)

6 Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

Electricity

The country launched the liberalisation of its electricity sector in 1990 with the

“Electricity Act” which opened the production to Independent Producers

(IPPs).

Since the opening of the sector, several IPPs obtained contracts to supply

electricity to the 3 national companies within the framework of "Power

Purchasing Agreements" (PPAs). The first PPAs were signed with relatively high

electricity prices (most of which in 1993). The first PPA expired in 2015 and

many of them were given short-term renewals by the Government (up to

3 years).

The Malaysia Electricity Supply Industry (MESI) initiative was launched in 2009

to restructure the electricity industry. The core policy of the MESI is the

Incentive-Based Regulation (IBR), which aims to bring more transparency in the

electricity supply by unbundling the generation, transmission, distribution and

system operation from an accounting perspective.

The ETP set out four priorities for electricity production: i) energy efficiency

(replacement of old power plants); ii) development of solar power plants; iii)

development of a nuclear programme; and iv) strengthening of the

hydroelectric programme. Nuclear power development has been a difficult

issue for the Government. However, the 11th plan 2016-2020 does not rule out

the option of exploring nuclear power and steps are ongoing to set up a

regulatory commission for nuclear power generation. The plan also aims to

balance renewable growth and power generation economics, which favours

coal-based power generation.

Oil

In accordance with the “Petroleum Development Act” of 1974, the State

granted Petronas exclusive property rights to the country’s hydrocarbon

resources. Of the 13 Entry Point Projects (EPPs) set out in the Oil, Gas and

Energy National Key Economic Areas (NKEAs) under the ETP, most concern the

oil sector: EPP1) rejuvenating existing fields through Enhanced Oil Recovery

(EOR); EPP2) developing small fields through innovative solutions; EPP3)

intensifying exploration activities; EPP4) building a regional storage and

trading hub; EPP6) encouraging investments in the oil and gas services and

equipment industry; EPP7) taking local oil and gas services and equipment

companies to the global stage; EPP8) attracting MNCS to set up operations in

Malaysia and partner with local firms; EPP13) increase petrochemical outputs.

Four priorities for electricity production:

improving energy efficiency, building up a solar capacity,

deploying nuclear energy and tapping hydroelectric potential

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 7

Gas

In 1993 the gas sector was liberalised through the “Gas Act”. Within the ETP’s

Oil, Gas and Energy NKEAs, EPP5 (unlocking premium gas demand in

Peninsular Malaysia) applies to the gas sector with several other EPPs

overlapping with the oil sector. The main focus is on increasing the exploration

efforts and unlocking the premium demand for natural gas. Many industrial

consumers in Malaysia have expressed their interest in using natural gas at a

price higher than those set by the Government (i.e. at a premium rate).

However, due to limited supply and a lack of infrastructure, these consumers

do not have access to natural gas. Unlocking the premium demand would

require price reforms, which would help tackle the supply shortage and lack of

infrastructure, as well as providing access to natural gas for industrial

consumers willing to pay higher prices.

The Gas Supply (Amendment) Bill 2016, is designed to enhance gas supply

industry competition by implementing Third Party Access (“TPA”).

Energy efficiency

KeTTHA developed the National Energy Efficiency Master Plan to ensure the

efficient use of energy in the country. To promote growth, the master plan

outlines several incentives that would encourage the development of energy-

efficient designs and products. The Plan aims to encourage the mass

production of energy-efficient equipment and appliances, which would

eventually bring down their production cost, making them cheaper in the

market.

The final draft of the National Energy Efficiency Action Plan (NEEAP), published

in 2014, has set a target of roughly 50.6 TWh cumulated electricity savings over

the plan period (10 years) compared to the business-as-usual scenario, to be

achieved in the 3 main sectors (i.e. the industrial, commercial and residential

sectors). The lifetime savings of technologies to be implemented during the

plan period amount to about 121 TWh. This will lead to a reduction of

40 MtCO2 over the 10-year period (96 MtCO2 accumulated). The electricity

demand growth reduction at the end of the plan is 6% compared to a BAU

scenario. Peak demand reduction resulting from the plan implementation is

estimated at 2.3 GW. The NEEAP focuses only on electricity. The transport

sector (30% of final energy demand in 2013) is not covered in the plan.

Minimum Energy Performance Standards (MEPSs) were introduced for

refrigerators, air-conditioners, televisions, fans and lamps (Fluorescent, CFL,

LED and Incandescent) in 2013 through an amendment to the Electricity

Regulations, with energy-efficiency labels.

Target: 80 TWh accumulated energy

savings in the industrial, commercial

and residential sectors

8 Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

Renewables

The main objective of the National Renewable Energy Policy and Action Plan

(2010) is to introduce an appropriate regulatory framework for the

development of renewable energy. This plan sets targets for the renewable

electricity capacity of 975 MW (6% of total capacity) in 2015, 2 065 MW (10%

of total capacity) in 2020, 3 484 MW (13% of total capacity) in 2030 and

11 544 MW (34% of total capacity) in 2050, excluding large hydro. So far,

between 2011 and 2015 just 327 MW worth of renewable generation capacity

was connected to the electricity grid in the framework of the programme.

In 2011, the Renewable Energy (RE) Act and Sustainable Energy Development

Authority (SEDA) Act was passed in Parliament. The RE Act lays out the

establishment and implementation of the FiT system as well as other related

matters. The SEDA Act established the Sustainable Energy Development

Authority (SEDA) Malaysia and establishes its function and powers.

FiTs include a basic fee determined according to the size of the installation and

bonus rates for specific installations. From 1 January 2017 the basic FiT for

Solar PV (community) was RM0.7424/kWh (US$16.5c) for installations < 4 kW;

RM 0.7243/kWh (US$16c) for installations between 4 kW and 24 kW; and RM

0.5218/kWh (US$11.6c) for installations above 24 kW. This translates into

reductions of around 10%, compared to January 2016. The installed capacity

limit for a FiT approval under the Community Quota was increased from 24 kW

to 48 kW in January 2015.

Malaysia is the world’s second largest exporter and producer of palm oil,

behind Indonesia.

In 2011, the Malaysia Biomass Initiatives (MBI) was launched to develop and

promote palm oil. This project is led by two major palm oil producers (Felda

and Sime Darby; both are public firms). It aims to turn the country into a high-

income economy by the year 2020, and propel it into a Green Future.

In 2011 Malaysia launched its B5 biodiesel programme. B5 is a blend of 95%

diesel and 5% palm oil-based biodiesel. In 2014, the B7 Programme was

implemented (7% palm oil-based biodiesel). However, both the B7 and B10

programs were deferred to a later date (possibly indefinitely) in November

2016.

The government planned to complete the full implementation of the B10

biodiesel in August 2016, raising the mandatory share of biodiesel in motor

fuels from the current 7% to 10%. To ensure the viability of the B10

programme, the Government decided to provide RM 414 million (US$127m)

per year starting in 2014.

For the industrial sector (programme B7), the mandate was due in June 2016,

Solar or wind capacity target of 3.5 GW by 2030

B7 Biodiesel implemented in 2014,

replacing the B5 biodiesel programme

Feed-in tariffs

Biofuels

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 9

raising the mandatory share of biodiesel to 7%. The new standard is expected

to raise the consumption of palm oil from 0.5 Mt/year to 0.7 Mt/year in

Industry.

In 2016, the country has 18 biodiesel plants with a total capacity of 2.3 Mt/year

and the current facilities in oil depots are able to handle blending up to 10%. In

2015, total crude palm oil production was 20 Mt (annual growth of 2% since

2013).

CO2

In the NDCs submitted to UNFCC in 2016, the country aims to reduce GHG

intensity of GDP by 45% in 2030 relative to 2005. Out of the total target, 35% is

unconditional and 10% is conditional to financing and technology transfer by

developed countries.

CO2 emissions from energy combustion increased at a high rate over 2000-

2008 (around 6.5%/year), but since 2009 the growth rate has been half as slow

(around 4.4%/year since 2010); CO2 emissions reached 237 Mt in 2016.

GRAPH 1: CO2-ENERGY EMISSIONS (MtCO2)

0

50

100

150

200

250

10 Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

Energy companies

State-owned Petronas and TNB remain the dominant companies in their respective fields.

Electricity

Three electricity companies dominate the country’s 3 geographical areas: TNB

(Tenaga Nasional Bhd) for the Peninsula; Sarawak Energy Bhd for Sarawak

(previously SESCO before its privatisation in 2005); and SESB (Sabah Electricity

Sdn. Bhd) for Sabah. TNB was partially privatised following a first sale of 27% of

the capital in 1992 and further sales bringing the public stake down to under

50% (28.2% in 2017 held by Khazanah Nasional Berhad).

TNB has a power capacity of 12.9 GW (10.8 GW thermal and 2.1 GW hydro),

and a generation mix as follows: coal 16%, gas 58%, oil 4% and hydro 22%

(June 2017). TNB also owns 60% of the IPP Kapar Energy Venture, a multi-fuel

(coal-oil-gas) IPP power plant (2 420 MW) and 80% of SESB. TNB holds 36% of

the country's electricity capacity (June 2017).

Sarawak Energy has an installed capacity of over 4 343 MW (2016).

SESB (formerly Sabah Electricity Board), which was privatised in 1998, is held

by TNB (80%) and the state of Sabah. It has an installed capacity of 1 275 MW

(2016) connected to the Sabah grid, including two oil power plants (Patau,

99 MW and Tawau, 64 MW) and one hydropower plant (Tenom Pangi,

66 MW).

The production capacity held by independent producers (IPPs) amounts to

12.5 GW. They accounted for around 47% of electricity production in 2016.

Malakoff Corporation Berhad (MCB) is the country’s main IPP, with an

effective production capacity of 6.73 GW (end 2016) through its stakes in 6

power plants: 4 gas combined cycle plants, i.e. Lumut (1 303 MW, 93.75%

stake), GB3 (640 MW, 75% stake) and Prai (350 MW, 100% stake); a coal

power plant, Tanjung Bin (3 100 MW, 90% stake); a gas turbine, Dickson Port

(440 MW, 25% stake); and Kapar (2 420 MW, 40% stake).

Edra is the second largest IPP, with a capacity of 3.5 GW (2016) in Malaysia

spread in 3 power plants: Telok Gong1 (440 MW), Telok Gong2 (720 MW), and

Tanjung Kling (330 MW).

Tenaga Nasional Bhd (TNB) holds 36% of Malaysia’s

electricity capacity

Generation

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 11

The Malaysian power transmission system is divided into three independent

networks managed by TNB, SESCO and SESB.

TNB, Sarawak Energy and SESB have the monopoly on electricity distribution in

each of their respective regions. TNB’s customer base is around 9.2 million,

covering Peninsular Malaysia, Sabah and Labuan.

Oil

The oil sector is dominated by Petronas, a public company.

Petronas is involved in exploration-production activities through its subsidiary

Petronas Carigali. Petronas produced around 40 Mt of crude oil (2016.

Petronas Carigali is also involved in overseas exploration activities in over 20

countries. Petronas owns and operates, through its subsidiary Engen Ltd, a

refinery in Durban, South Africa (125 000 bbl/d). The group has a total oil

refining capacity of 448 000 bbl/d.

Foreign firms are active in exploration through joint ventures with Petronas,

within the framework of production sharing contracts. Its main partners are

ExxonMobil, followed by Shell.

In 2007, Murphy Oil started production in the deep offshore Kikeh field

(1 300 m) (production of 65 000 bbl/d). Reserves are estimated to range

between 0.4 Gbl and 0.7 Gbl.

Shell is the operator of the offshore Gumusut-Kapap field (production of

135 000 bbl/d, started in 2012) with a 33% stake; its partners are

ConoccoPhilips (33%), Petronas (20%) and Murphy Oil (14%).

Production in the field of Malikai, which is operated by Shell, ConocoPhillips

(35% each) and Petronas (30%) started in 2014 with 140 000 bbl/d.

Of the six refineries in activity, three are operated by Petronas (Kertih with

49 000 bbl/d, and Melaka I and II with 100 000 bbl/d each), one is operated by

SRC, Shell Refining Company, (Port Dickson with 156 000 bbl/d), one by Petron

Corp. (Port Dickson with 88 000 bbl/d) and one by Kemaman Bitumen Co

(Kemaman with 24 000 bbl/d). In February 2016, Shell reached agreement

with MHIL, Malaysian Hengyuan International Ltd (a subsidiary of Chinese

private refiner Hengyuan Petrochemical Company) for the sale of its 51%

shareholding in SRC for US$66.3m, which completed in December 2016

In the distribution sector, Shell owns more than 900 petrol stations and has a

market share of about 36% in terms of sales volumes. Petronas, through its

Petronas dominates Malaysia’s oil and

gas sector

Transmission

Distribution

Upstream

Midstream

Downstream

12 Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

subsidiary PetDag, Petronas Dagangan Bhd, ranks second: it owns more than

1 000 petrol stations and has a market share of 31%.

Gas

Petronas is the main player both in natural gas production and on the LNG

market. Petronas controls the 3 LNG complex units of Bintulu through 4

subsidiaries. In 2016 its gas production reached 85 bcm,

Malaysia LNG (MLNG) (90% held by Petronas and 5% each by Sarawak and

Mitsubishi) manages the first unit, which has a capacity of 8.4 Mt/year and was

commissioned in 1983. Petronas purchased the stakes held by Shell and

Mitsubishi (15% each) in 2003.

The second unit belongs to MLNG Dua (Petronas 60%, Shell 15%, Mitsubishi

Corporation 15% and the state of Sarawak 10%). It has 3 trains, a capacity of

9.6 Mt and was commissioned in 1995.

The third unit belongs to MLNG Tiga (Petronas 60%, Shell 15%, the state of

Sarawak 10%, Nippon Oil 10% and Diamond Gas Netherlands 5%) and has 2

trains of 3.85 Mt, commissioned in 2003.

The fourth unit, owned by PL9SBP (Petronas 80%, JXTG Nippon Oil & Energy

Corp 10% and PTTGLI (a Petronas-PTT joint venture company) 10% since July

2017). It has a capacity of 3.6 Mt and commenced commercial operation in

early 2017.

Petronas also takes part in the processing and ground transportation of natural

gas through Petronas Gas Sdn Bhd (PGSB). On the Peninsula, Petronas sells

natural gas to the private gas distribution consortium, Gas Malaysia Sdn Bhd

(Petronas 14%, MMC-SHAPADU 41%, Tokyo Gas Mitsui 19%, public 26%). In

Sarawak, Petronas sells gas directly to big consumers. In Sabah, the distribution

of gas is carried out through the intermediary of a public company, Sabah

Energy Corporation (SEC).

Petronas is involved in the transport of LNG via its subsidiary MISC (Malaysia

International Shipping Corp), which has 26 LNG carriers.

Petronas is expanding abroad. It now produces gas in Iran (fields of Sirri and

since 2002 blocks 2 and 3 of South Pars), Myanmar, Indonesia and Egypt. In

March 2003, Petronas purchased the 50% stake held by Edison in the West

Delta Deep Marine project in Egypt, operated by British Gas. At the same time,

Petronas acquired the 35.5% stake held by Edison in Egyptian LNG (ELNG),

which exploits the LNG plant of Idkou. ELNG is made up of BG (operator) with

35.5%, Petronas with 35.5%, EGPC with 12%, EGAS with 12% and Engie with

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 13

5%. The plant includes 2 trains of 3.6 Mt/year each, commissioned in 2005. The

entire production of the first train was contracted by Engie, although exports

have been severely curtailed since 2014 due to gas shortages.

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 14

Energy supply

Malaysia remains one of the top energy suppliers in Southeast Asia, although it still has a strong energy potential to be exploited.

Resources

Malaysia’s oil reserves were estimated to be about 490 Mt at the end of 2016

(i.e. about 17 years of production). The country’s gas reserves are far larger

(2 740 bcm in 2016); they represent around 40 years of production. The

country also has substantial coal reserves, evaluated at 4 Gt, which are

essentially located in the states of Sarawak and Sabah. Moreover, Malaysia has

a strong hydroelectricity potential, only a small part of which is being exploited.

Malaysia also has a renewable energy potential, mainly from waste of the palm

oil and wood industry (potential estimated at 665 MW).

Electricity

The installed electricity capacity is 33.5 GW, 80% of which is thermal (end of

2016). The share of gas in the total capacity is 46%, while the share of coal

stands at 26%. Hydro accounts for 19%, oil and biomass each account for 4%,

while the remainder (1%) comes from wind and solar.

The main coal plants are: Manjung (3 100 MW, commissioned by TNB in 2004

and 2014), Tanjung Bin (3 100 MW commissioned by Malakoff in 2006, 2007

and the last extension of 1 000 MW in 2016) and Jimah (1 400 MW,

commissioned by Jimah Energy Venture in 2009).

The 2400MW Bakun dam in Sarawak has been fully operational since mid-

2014. The power plant is operated by Sarawak Hidro Sdn Bhd, which is 100%

controlled by the Ministry of Finance. The Murum hydropower project

(944 MW) was fully commissioned in 2015 by Sarawak Energy.

Kimanis Power Sdn Bhd, a joint venture between Petronas Gas (60%) and NRG

Consortium (40%), fully commissioned its CCGT in Sabah (300MW) in 2014.

TNB commissioned the 1071 MW CCGT in Pariin February 2016.

Installed capacity

80% of the installed power capacity is thermal

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 15

GRAPH 2: INSTALLED ELECTRIC CAPACITY BY SOURCE (2016, %)

4%

46%26%

4%

19%

1%

Oil

Gas

Coal

Biomass

Hydro

Nuclear

Wind, solar, geoth.

33.5 GW

In 2016, electricity production reached 164 TWh, 89% of which was thermal.

Gas accounts for 47% of production and coal for 39%.

GRAPH 3: GROSS POWER PRODUCTION BY SOURCE (TWh)

0

20

40

60

80

100

120

140

160

180

Nuclear Hydro Oil Gas Coal Biomass Others

TWh

Power generation

Electricity production reached 164 TWh

with 89% from thermal power

16 Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

GRAPH 4: POWER GENERATION BY SOURCE (2016, %)

2%

47%

39%

1%

11%0.2%

Oil

Gas

Coal

Biomass

Hydro

Nuclear

Wind, solar, geoth.

163.6 TWh

Malaysia is interconnected with Singapore (with two 230 kV submarine cables

with a capacity of 200 MW) and Thailand (with one 300 kV line of 300 MW).

Electricity trade is limited (75 GWh of imports and 45 GWh of exports).

In the framework of the ASEAN Power Grid project between Indonesia,

Singapore and Malaysia, the interconnection between Sarawak and West

Kalimantan in Indonesia was commissioned in 2016. The financing came from

ADB (US$49.5m) and the French Development Agency (AFD, US$49.5m), as

well as a US$2m grant provided by the Multi-Donor Clean Energy Fund under

the Clean Energy Financing Partnership Facility.

Oil

Oil production has remained relatively stable over the last ten years (33.5 Mt in

2016). Two thirds of the oil produced comes from the offshore fields on the

Peninsula (50% of which from the field of Tapis near Terengganu) and 1/3 from

Sabah and Sarawak. Malaysia has been an oil exporting country since 1975.

Crude oil exports reached 23 Mt in the early 1990s. Between 2005 and 2015,

they have decreased by 3.8%/year, but rebounded to 19.5 Mt in 2016.

The country’s refining capacity amounts to 486 000 bbl/d, distributed over six

refineries. Malaysia has invested heavily in refining activities during the last

two decades and is now able to meet most of the country’s demand for

petroleum products domestically, after relying on the refining industry in

Singapore for many years.

Transmission

486 600 bbl/d Malaysia’s refining capacity

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 17

Natural gas

Natural gas production has been increasing since 2012, growing from 61 bcm

to 66.7 bcm in 2016, following a period of slight decreases. Production

increased quickly until 2005, from 18.4 bcm in 1990 to 50.4 bcm in 2000.

Production at the JDA offshore field between Malaysia and Thailand (“Joint

Development Area”) started in 2005. The project was developed by CTOC

(Carigali Triton, 50/50 Petronas Carigali and Amerada Hess). The gas is

evacuated via the TTM (Trans-Thai-Malaysia) gas pipeline to Thailand and

Malaysia. A gas separation plant entered into service in 2005.

Around 50% of the gas produced is exported, mainly as LNG, from the complex

liquefaction plant of Bintulu (capacity of 28 Mt/year including the last train

commissioned in early 2017). In 2015 Malaysia lost its second rank among the

largest LNG exporters in the world; in 2016, it ranked third after Qatar and

Australia, with 34 bcm. A floating LNG facility (FLNG) of 1.2 Mt/year was

commissioned near Kanowit (Bintulu, Sarawak region), at the end of 2016,

with first commercial cargo in 2017.

Malaysia has traditionally been a major exporter of LNG with long-term sales

to Japan, South-Korea and Taiwan. However, increased domestic demand has

led to the construction of Malaysia's first LNG import terminal in Melaka,

commissioned in 2013, with a capacity of 3.8Mt/year (FRSU located offshore

Sungai Udang).

In 2016, LNG exports went mainly to Japan (62%), South Korea (16%), China

(11%) and Taiwan (11%).

Since 1992, gas is also exported by pipeline to Singapore (1.6bcm/year). Within

the framework of the Trans-ASEAN gas pipeline project, a pipeline between

West Natuna (Indonesia) and Duyong was commissioned in 2002. The pipeline

is used for the delivery of 6.7 mcm/d of gas over a 20-year period under a

contract signed between Pertamina and Petronas in 2001.

In 2016, Malaysia net gas trade (including pipeline) remained unchanged at

25.3 Bcm.

More than half of the gas exports go to Japan

18 Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

GRAPH 5: MAP OF NATURAL GAS INFRASTRUCTURE

Malaysia Gas Map

Singapore

Sources: Shell, Malaysia Energy Commission, Enerdata Estimates

Pengerang4.7 bcm/yr (2019)

Melaka LNG5.1 bcm/yr (2013)

KualaLumpur

Thailand

Indonesia

LNG import terminal

LNG import terminal planned or under construction

LNG export terminal

LNG export terminal planned or under construction

Gas pipeline

Gas pipeline planned or under construction

Gas fields zone

LEGEND

Malaysia FLNG2 bcm/yr (2020)

Kanowit FLNG1.6 bcm/yr (2017)

Malaysia LNG35 bcm/yr (1983-2010)

Malaysia LNG exp.4.9 bcm/yr (2017)

MARLIN0.7 bcm/yr (2015)

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 19

Energy prices

With the recent drop in oil prices, the Malaysian Government took the opportunity to remove fuel subsidies, resulting in market-based price adjustments.

Oil

In an attempt to improve its current account deficit and to reduce its fiscal

deficit, Malaysia cut fuel subsidies in 2013, which saved US$1bn in 2014. End-

consumer prices increased by US$0.06/l. Low-income families benefit from

higher cash pay-outs to soften the impact of the price hike. In 2014, the

Government removed subsidies on a popular grade of gasoline (RON95) and

diesel. Instead, the prices will be fixed according to a “managed float” system.

In 2016, the average prices of motor fuels fell further to US$0.45/l for gasoline

and US$0.44/l for diesel. However, even after subsidy cuts, gasoline and diesel

are much cheaper than in other Asian countries. Consumers in Japan and in

South Korea pay more than double the price in Malaysia.

GRAPH 6: GASOLINE & DIESEL PRICES (US$/l)

0.67

0.89 0.93 0.89

0.68

0.520.45

0.57

0.62 0.62 0.590.65

0.490.44

2010 2011 2012 2013 2014 2015 2016

Gasoline Diesel Brent

Cuts in fuel subsidies to improve the current account

deficit and reduce the fiscal deficit

20 Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

Electricity

In 2015, the average price of electricity was the same for households and

industrial customers (US$7.4c/kWh). Electricity prices are similar to those in

neighbouring countries like China but much lower than in Japan and South

Korea.

GRAPH 7: ELECTRICITY PRICES FOR INDUSTRY AND HOUSEHOLDS (US$c/kWh)

8.59.1 9.2 9.1 9.2

6.96.6

7.98.4

9.1 8.9 9.2

7.7 7.4

2010 2011 2012 2013 2014 2015 2016

Industry Households

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 21

Energy consumption

Energy consumption is increasing very rapidly. The share of oil in final energy consumption is decreasing, whereas the share of electricity and gas is increasing.

In 2015, consumption per capita was 3.1toe. Electricity consumption per capita

has increased from around 2 600 kWh per capita in 2000 to 4 00 kWh in 2016.

Total energy consumption increased at the rapid pace of 4.2%/year, on

average, from 2000 to 2016. Natural gas and oil account for 37% and 39%,

respectively, of total consumption (2016). The share of coal has increased

significantly since 2000 (from 5% in 2000 to 20% in 2016). The weight of the

other energy sources (biomass, hydro, etc.) is still low.

GRAPH 8: CONSUMPTION TRENDS BY ENERGY SOURCE (Mtoe)

0

10

20

30

40

50

60

70

80

90

100

Coal Oil Gas Primary Electricity* Biomass

*Including heat ; Nuclear (1TWh = 0.26 Mtoe), Hydroelectricity and wind (1 TWh = 0.086 Mtoe), Geothermal (1 TWh = 0.86 Mtoe)

Mtoe

Around 15 points increase in the share of coal from 2000

22 Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

GRAPH 9: TOTAL CONSUMPTION MARKET SHARE BY ENERGY (2016, %)

20%

39%

37%

2% 2%Coal

Oil

Gas

Primary Electricity*

Biomass

*Including heat ; Nuclear (1TWh = 0.26 Mtoe), Hydroelectricity and wind (1 TWh = 0.086 Mtoe), Geothermal (1 TWh = 0.86 Mtoe)

94.3 Mtoe

The electricity sector is the biggest gas consumer, with a 52% share in 2016;

the rest is consumed almost exclusively in the industrial sector.

Between 2000 and 2016, final energy consumption grew by 4%/year.

Electricity consumption has more than doubled since 2000 and reached

149 TWh in 2016.

Oil products accounted for 58% of final consumption in 2016; their share has

decreasing modestly since the beginning of the 90s (65% in 1990 and 60% in

2000). The market share of gas was 14% in 2016. The share of electricity is

progressing steadily (23% in 2016 compared to 18% in 2000). The share of

biomass and coal is low, representing 4% and 2% of final consumption,

respectively.

Transport accounts for 42% of final consumption, industry for 29%, the

residential-tertiary sector for 18%, and non-energy uses for 11% (2016).

Electricity consumption more than doubled between 2000 to 2015

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 23

GRAPH 10: FINAL CONSUMPTION MARKET SHARE BY SECTOR (2016, %)

29%

42%

18%

11%

Industry

Transport

Households & services

Non energy uses56 Mtoe

Enerdata — Energy Report — Malaysia February 2015— Copyright © Enerdata — All rights reserved 24

Issues and prospects

Malaysia expects to become a regional leader through large investments in the oil and gas sector.

Oil

Following Singapore’s example, Malaysia is considering becoming an important

export hub for oil products.

Petronas is developing a world-scale integrated refinery and petrochemical

complex in the state of Johor to answer the growing demand for petroleum

and petrochemical products in the Asia Pacific region by 2019 (US$19bn). The

project will have a refining capacity of 300 000 bbl/d and will supply naphtha

and LPG feedstock for the RAPID petrochemical complex, as well as produce

gasoline and diesel that meet European specifications. In 2014 Petronas

awarded the front-end engineering and design (FEED) contract to Technip and

the engineering, procurement and construction management (EPCM) contract

to Technip and Fluor. In February 2017 Aramco agreed to invest US$7bn for an

equity stake in the project.

Gas

Petronas is investing in the development of the North Malay gas basin. This

new project comprises the development and commercialisation of nine

discovered gas fields and the construction of 300 km of pipeline. This project is

expected to produce 1.6 bcm when it enters the full production phase, having

produced its first gas in July 2017.

The Trans-ASEAN Gas Pipeline (TAGP) is the big project for the interconnection

of the gas networks of the ASEAN countries. An MoU was signed in 2002 by

the ASEAN Ministers for the construction of the 4 200 km-long gas pipeline to

connect the 10 member countries (cost of €7bn). To date, 11 bilateral

connections have already been established, with a total length of more than

3 000 km. ASEAN expects the full interconnection of these pipelines to be

achieved by 2020 (including LNG as virtual pipelines)

The Sabah-Sarawak Gas Pipeline (SSGP), operated by Petronas, began

operation in 2014 and is part of the Petronas Sabah-Sarawak Integrated Oil

and Gas project master plan. The project faced several delays. In 2014, an

Petronas’ world-scale integrated refinery and petrochemical complex

should be completed by 2019

The Sabah-Sarawak Gas Pipeline project

transports gas from the fields of Sabah to the Bintulu terminal

for export

Refining

Exploration, production

Gas pipelines

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved 25

explosion occurred in a section of the interstate gas pipeline in Lawas,

Sarawak, causing further delays. This 512 km-long pipeline will transport gas

from the field of Sabah to the Bintulu terminal for export. The project also

includes the construction of a gas terminal in Kimani.

As two liquefaction projects have started production in 2017, there is only one

remaining project for LNG liquefaction facilities with a total capacity of

1.5 Mt/year; and one LNG regasification project (3.5 Mt/year).

Petronas other FLNG project, Rotan FLNG, which is offshore Sabah, with a

capacity of 1.5 Mt/year, saw its original commissioning date of 2018 pushed

back to 2020.

Petronas has awarded Samsung a contract to build the LNG regasification

terminal in Pengerang (Southern Johor). It will have a capacity of 3.5 Mt/year

and is expected to be commissioned in 2019.

Electricity

Malaysia has around 8.5 GW worth of power plants at the approved stage or

already under construction Gas accounts for 35% of that capacity, coal

accounts for 42% and hydro for 21%.

One dam has been approved by Sarawak Energy, namely the 1 285 MW Baleh

hydro dam (expected to start in 2025). The company has awarded a contract

to a joint venture consisting of the China Gezhouba Group Co. Ltd. and Untang

Jaya Sdn Bhd to perform main civil work construction, expected to start in

2018.

More than 4 GW worth of hydro projects are under the planning stage by TNB,

Sarawak Energy and TEPSO.

Sarawak Energy is constructing the 600 MW Balingian plant, which is expected

to be commissioned in 2018.

TNB’s 1 000 MW Fast Track Project 3A has been approved and is expected to

be commissioned in October 2017. Another project by TNB, 2 000 MW project

3B-1 & 2, has also been approved and is expected to start in 2018-2019.

Petronas Gas is building the 1220 MW Pengerang plant, and the first phase of

400 MW is expected to be commissioned in 2017.

TNB is developing Project 4A, a 1 000 MW CCGT project approved in 2014 with

commissioning expected in 2020.

The Pengerang regasification terminal is

expected in 2019

8.5 GW of power plants are under construction or at the

approved stage

Plans for 4 coal-fired plants

to supply electricity needs in Sarawak

LNG projects

Hydropower projects

Coal power projects

Gas power projects

26 Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

Based on approved projects eligible for feed-in tariffs, SEDA estimates that the

capacity of renewables should reach 576 MW in 2018, with solar PV

accounting for 87 MW, small hydro for 204 MW and biomass for 168 MW.

1MDB Solar will build a 50 MW solar plant in Kedah.

Tawau Green Energy’s 30 MW Apas Kiri Geothermal plant started construction

in February 2016 and is expected to be commissioned in 2018. Produced

electricity will be exported to the Sabah Grid, under a 21-year renewable

energy PPA with Sabah Electricity at a feed-in tariff of RM0.45 per kWh.

In the framework of the ASEAN Power Grid project, Indonesia, Singapore and

Malaysia have agreed to build interconnection networks worth US$1bn. PLN

(Indonesia), Sarawak Energy and TNB and Singapore Power will jointly build 3

power transmission lines connecting Sarawak in Malaysia to Pontianak (West

Kalimantan) in Indonesia; Penang in Malaysia to Riau (Sumatra) in Indonesia;

and Singapore to Batam and Bintan in the Riau Islands of Indonesia. The first

part between Sarawak and West Kalimantan was commissioned in 2016. The

two other projects are the Malacca-Sumatra interconnection that is still under

development, and the Nunukan-Sabah link, which is still at the planning stage.

The renewable energy capacity should reach

576 MW by 2018

Renewable projects

Transmission projects

Energy Statistics

Table 2 : Supply Indicators

Reserves* 1990 2000 2012 2013 2014 2015 2016Oil Mt 484 616 499 510 490 490 490Gas bcm 1640 2189 2550 2611 2676 2740 2740* On December 31 st

Capacity* 1990 2000 2012 2013 2014 2015 2016Refining capacity mb/d 0.21 0.51 0.54 0.54 0.54 0.54 0.54Electricity capacity GW 4.7 13.8 28.8 30.1 30.8 32.6 33.5of which Thermal GW 3.6 11.7 25.5 25.6 25.9 26.9 26.9 Hydroelectricity GW 1.1 2.1 3.3 4.5 4.8 5.5 6.4 Nuclear GW 0 0 0 0 0 0 0 Geothermal GW 0 0 0 0 0 0 0 Wind GW 0 0 0.001 0.001 0.001 0.001 0.001* On December 31 st

Production 1990 2000 2012 2013 2014 2015 2016Oil Mt 30.0 31.3 30.7 29.3 30.2 32.5 33.5Gas bcm 18.4 50.4 61.0 69.0 69.7 65.6 66.7Coal Mt 0.11 0.38 3.0 2.9 2.7 2.6 1.3Electricity TWh 23.0 69.3 134 138 147 151 164of which Thermal % 82.7 89.9 93.2 92.2 90.8 90.1 89.1 of which Coal % 13 11 42 39 38 38 39 Gas % 24 74 47 49 50 50 47 Hydroelectricity % 17 10 7 8 9 10 11 Nuclear % 0 0 0 0 0 0 0 Geothermal % 0 0 0 0 0 0 0 Wind % 0 0 0 0 0 0 0

External trade* 1990 2000 2012 2013 2014 2015 2016

Crude oil Mt -20.3 -9.1 -1.7 -1.5 -1.8 -5.5 -5.5Oil products Mt 2.0 -1.9 -1.3 7.0 7.4 8.2 5.8Gas bcm -10.3 -21.1 -22.6 -23.7 -24.3 -25.3 -25.3Coal Mt 2.2 3.1 22.2 21.5 21.6 24.2 29.1Electricity TWh -0.06 0.001 0.09 0.19 0.01 0.01 0.05* Imports(+) exports(-) balance

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

Energy Statistics

Table 3 : Demand Indicators

Consumption per capita 1990 2000 2012 2013 2014 2015 2016Total toe 1.2 2.1 2.7 3.0 3.0 2.9 3.1Electricity kWh 1095 2613 4157 4322 4436 4473 4840

Consumption trends 1990 2000 2012 2013 2014 2015 2016Total %/year 7.4 14.4 1.9 12.6 2.0 -1.7 6.3Gas %/year -5.3 21.6 2.4 17.7 0.58 -11.4 2.9Electricity %/year 10.8 9.3 7.9 5.6 4.1 2.4 9.9

Total consumption 1990 2000 2012 2013 2014 2015 2016Total Mtoe 21.8 49.1 78.6 88.5 90.2 88.7 94.3of which Oil % 53 40 35 36 37 39 39 Gas % 31 50 41 43 43 38 37 Coal, lignite % 6 5 20 17 17 19 20 Primary electricity* % 2 1 1 1 1 1 2 Biomass % 9 4 2 2 2 2 2* Nuclear (1TWh = 0.26 Mtoe), Hydroelectricity and wind (1 TWh = 0.086 Mtoe), Geothermal (1 TWh = 0.86 Mtoe)

Final consumption 1990 2000 2012 2013 2014 2015 2016Total Mtoe 13.7 29.8 47.5 53.8 53.3 52.5 56.0By energy Oil % 67 62 51 52 55 58 58 Gas % 8 13 21 22 18 14 14 Coal, lignite % 4 3 4 3 3 4 4 Electricity % 12 18 22 20 21 22 23 Heat % 0 0 0 0 0 0 0 Biomass % 9 4 2 2 2 2 2By sector Industry % 40 39 33 28 28 28 29 Transport % 35 36 32 38 42 43 42 Households & services % 19 17 19 17 18 18 18 Non energy uses % 6 8 16 17 12 10 10

Electricity consumption 1990 2000 2012 2013 2014 2015 2016Total TWh 19.9 61.2 121 127 133 136 149of which Industry % 48 53 47 47 48 48 48 Households % 20 19 20 21 21 21 21 Services % 31 28 32 32 31 31 31

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

Energy Statistics

Table 4 : Energy Balances

Total energy balance (Mtoe) 1990 2000 2012 2013 2014 2015 2016

Production 48.4 77.7 87.8 93.5 95.2 94.1 95.5Imports 9.67 16.3 45.0 51.0 51.5 52.3 57.2Exports 35.6 43.7 53.3 51.9 52.7 55.8 60.0Aviation and marine bunkers 0.58 1.48 2.07 2.75 2.73 2.87 2.99Stock Changes -0.08 0.20 1.08 -1.41 -1.02 0.97 4.59Primary Supply 21.8 49.1 78.6 88.5 90.2 88.7 94.3Final Consumption 13.7 29.8 47.5 53.8 53.3 52.5 56.0of which Industry 5.50 11.7 15.6 15.0 15.1 14.8 16.2 Transport 4.80 10.8 15.4 20.2 22.6 22.8 23.7 Residential & Services 2.60 4.97 9.00 9.33 9.35 9.44 10.3 Non-Energy Uses 0.84 2.25 7.49 9.22 6.22 5.46 5.82

Detailed energy balance (Mtoe) 2016(Mtoe) Coal Crude Oil Natural Primary Elec. Biomass Total**

Oil Products Gas Elec.*Production 0.84 34.6 56.3 1.54 2.16 95.5Imports 18.5 9.13 22.4 7.12 0.005 0.01 57.21Exports -0.18 -14.9 -16.3 -28.4 0.0 -0.18 -60.01Aviation and marine bunkers -2.99 -2.986Stock changes -0.02 2.14 2.64 -0.17 4.59Primary supply 19.1 31.0 5.81 35.0 1.539 0 1.82 94.3Petroleum refineries -28.3 25.2 -3.08Power plants -15.8 -1.00 -18.2 -1.539 14.1 -0.24 -22.70Others -1.24 -2.69 2.20 -9.033 -1 -0.464 -12.465Final Consumption 2.15 32.2 7.70 12.8 1.11 56.0of which Industry 2.15 4.07 3.89 6.11 0 16.2 Transport 23.2 0.22 0.02 0.29 23.7 Households & services 2.75 0.02 6.69 0.83 10.3 Non energy uses 2.25 3.57 5.82* Nuclear (1TWh = 0.26 Mtoe), Hydroelectricity and wind (1 TWh = 0.086 Mtoe), Geothermal (1 TWh = 0.86 Mtoe)

** Including heat

0

20

40

60

80

100

120

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Production Primary consumption

Mtoe

Enerdata — Energy Report — Malaysia— Copyright © Enerdata — All rights reserved

Abbreviation

Oil

bbl barrels

bbl/d barrels per day

mbl million barrels

mb/d million barrels per day

kb thousand barrels

kb/d thousands barrels per day

Gbl billion barrels

kboe thousand barrels of oil equivalent

Mboe million barrels of oil equivalent

Gboe billion barrels of oil equivalent

l liters

LPG Liquefied Petroleum Gas

NGL Natural Gas Liquids

E&P Exploration& Production

Coal ktoe thousands tonnes

of oil equivalent

Mtoe million tonnes of oil equivalent

Mt million tonnes

IGCC integrated gasification combined cycle

Economy

GDP Gross Domestic Product

BAU Business As Usual

€c euro cents

€k thousands of euros

€m million euros

€bn billion euros

US$ US dollars

lc/$ local currency vs. Dollar

$05 dollars at constant exchange rate and price of the year 2005

$05p dollars at constant exchange rate, price and purchasing power parities of the year 2005

%/year percentage per year

Natural gas mcm million cubic

meters

bcm billion cubic meters

mcm/year million cubic meters per year

bcm/year billion cubic meters per year

LNG Liquefied Natural Gas

GCV Gross Calorific Value

FSRU Floating Storage and Regasification Unit

FLNG Floating Liquefied Natural Gas

Electricity kW Kilowatt

kWp Kilowatt-peak

MW Megawatt

GW Gigawatt

kWh Kilowatt hour

MWh Megawatt hour

TWh Terawatt hour

GWh Gigawatt hour

CCGT combined cycle gas turbine

IPP Independent Power Producer

CHP Combined Heat and Power

PPA Power Purchase Agreement

T&D Transmission & Distribution

kV kilo volt

HVDC High Voltage Direct Current

UHV Ultra High Voltage

UHVDC Ultra High Voltage Direct Current

FiT Feed-In Tariff

CO2

MtCO2 million tonnes of carbon dioxide

gCO2 grammes of carbon dioxide

tCO2/cap tonnes of carbon dioxide per capita

CO2eq CO2 equivalent

kg kilogrammes

CCS carbon capture and storage

ETS Emission Trading Scheme

GHG Greenhouse Gases

INDC Intended Nationally Determined Contribution

EUA European Union emission Allowances

Energy Efficiency

NEEAP National Energy Efficiency Action Plan

EPBD Energy Performance of Buildings Directive

EED Energy Efficiency Directive

Uranium

$/lb dollar per pound

Mlb million pounds

Infrastructures

km kilometers

HOA Head of Agreements

MoU Memorandum of Understanding

LOI Letter of Intent

FEED Front-End Engineering Design

FID Final Investment Decision

EPC Engineering, Procurement, Construction

EPCC Engineering, Procurement, Construction and Commissioning

BOO Build-Own-Operate

BOOT Build-Own-Operate-Transfer

BOT Build-Own-Transfer

O&M Operation and Maintenance

TSO Transmission System Operator

TYNDP Ten-Year Network Development Plan

Glossary

Production

Production

Energy production always corresponds to gross domestic production. It consists of primary and secondary gross production, except for natural gas for which production corresponds to marketed production.

Gross power generation

Gross production of electricity includes the public production (production of private and public electricity utilities) and the autoproducers, by any type of power plants (including cogeneration).

Trade

Balance of trade

The trade balance is the difference between exports and imports. The balance of a net exporter appears as a negative value (-).

Imports

Imports are the quantities of energy products imported from abroad into the national territory, deductions being made for quantities simply in transit destined for other countries and those quantities which are processed within the national boundaries on behalf of another country.

Exports

Exports are the quantities of energy product exported from the national territory to foreign countries, deductions being made for products simply in transit and quantities

processed on behalf of other countries. For reasons of accounting conformity, exports appear with a negative sign (-) in the energy balance.

Consumption

Total energy consumption

Total energy consumption, for each energy product, is the sum of total production, balance of trade, aviation and marine bunkers, and stock variations.

Final consumption

Final consumption is the difference between total consumption and the consumption of the energy sector for its own uses or as inputs in transformations (e.g. power generation, refining, oil, coal, gas extraction, LNG plants...), in transport and distribution (T&D losses,.), as well as statistical discrepancies. Final consumption measures the needs of the final consumers of the country. They are broken down into several sectors: industry, transport, residential, tertiary, agriculture and non-energy uses.

Final consumption of industry

Final consumption of industry includes the final consumption of the mining sector, manufacturing sector, and construction and water distribution and processing. It excludes the fuel used as input for autoproduction and includes the autoproduced electricity. It excludes the fuel consumption of all modes of transport used by industry, and also

excludes energy products employed for non energy uses (e.g. raw materials in petrochemicals, lubricants).

Final consumption of transport

Final consumption of transport is the total consumption of all modes of transportation regardless of to whom they belong, and to what purpose the transport serves. Aviation and marine bunkers (international aviation and sea transport) are excluded.

Final consumption of residential, tertiary and agriculture

This consumption is broken down into three sub-sectors: residential, tertiary, agriculture (including fishing activities).It is often defined as the total final energy consumption energy uses, excluding industry and transport sectors.

Final consumption for non energy uses

This covers products used in the petrochemical industry (e.g. naphta), for the production of ammonia (natural gas), for electrodes (carbon), and all other products used for their physical-chemical properties (bitumen, paraffin, motor oils, etc....).It is divided into chemical and others.

CO2

CO2 emissions cover the emissions from fossil fuels combustion (coal, oil and gas). They are calculated according to the UNFCCC methodology. Here the sectoral approach is presented, ie the sum of CO2 emissions of each sector.

Prices

Gasoline and diesel prices

Price all taxes in Dollar or Euro. For gasoline corresponds to the premium gasoline unleaded 95; for the former years series retropolated from the variation of premium gasoline 98 and / or normal unleaded gasoline and / or premium leaded gasoline. For diesel, corresponds to price including all taxes of the motor fuel for the motorists.

Households and Industry prices (Gas and Electricity)

Price all taxes in Dollar or Euro. They used to be calculated as the average revenues per kWh of electricity received by all (or main) public or private utilities of the sector. They can also refer to the price applied to a particular class of consumer; in particular for European countries for prices after 2007 (Eurostat data).

Economy

GDP

GDP measures the economic activity of a country. To allow comparison between countries and avoid the impact of inflation it provided in constant price at purchasing power parities (converted on the basis of the exchange rate of 2005 and the rate of purchasing power parity of World Bank).

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