Fraser & Neave Holdings Bhd (F&N) Group has urged the Malaysian government to consider giving greater incentives to companies converting their manufacturing operations from fuel oil to natural gas.
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Fraser & Neave Holdings Bhd (F&N) Group has urged the Malaysian government to consider giving greater incentives to companies converting their manufacturing operations from fuel oil to natural gas. Speaking at the F&N Dairies“ Natural Gas project on 13 October 2004, F&N Group chairman Tengku Syed Badarudin Jamalullail said more manufacturers could be expected to switch to natural gas to buffer against the fluctuation in oil prices. The price of oil recently reached a record high of USD 50 per barrel. The F&N chairman said that the group“s glass factory in Johor Bahru and soft drinks plant in Shah Alam were in various stages of converting from fuel oil to natural gas. F&N Dairies“ chief executive officer, Tan Ang Meng, said the conversion to natural gas would enable the company to save about 35% on medium fuel oil. Another guest at the lunch, Muhamad Noor Hamid, the CEO of Gas Malaysia, said that incentives from the government were important to support industries switching to natural gas due to the rise in oil prices. Muhamad Noor said that by using natural gas, businesses could save as much as 45% on the total cost of fuel oil and 65% on the overall cost of diesel. He said savings could also be higher when natural gas is used instead of Liquefied Petroleum Gas (LPG) products. The tariff for natural gas is currently controlled by the Malaysian government.
