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Energy trade in Borneo

Updated On: Oct 06, 2008

Burnei is negotiating with Sarawak to buy between 300 and 400 megawatts (MW) of electricity from the Murum hydroelectric dam in Sarawak due to be completed by 2013. At the same time, a transmission line will be constructed from the dam to Brunei.

East Malaysia seems to be doing a roaring trade in energy of late. Power from the Bakun dam, which could generate up to 2,400 MW, has already been planned for transmission to Peninsular Malaysia. Besides exporting energy to Brunei, Murum dam will also supply the energy needs of industries in the Sarawak Corridor of Renewable Energy between Mukah and Bintulu.

Sarawak is also negotiation with Kalimantan and Sabah for similar sales of energy. Kalimantan especially has shown great interest. Such energy sales are also benefitting other players in East Asia. The Murum dam construction in the upper Rajang basin had been given to the same company that constructed China's Three Gorges Dam. The cost of the Malaysian project is about RM3 billion and can generate nearly 1,000 MW.

In terms of future development, Sarawak is looking forward to exploiting its plentiful coal reserves to generate more power to meet its own energy consumption of about 5,000 MW by 2015. To do that, Sarawak will have to increase the capacity of the coal-fired plants in Mukah. Sarawak has more than one billion tonnes of coal reserves, including 550 million tonnes in Mukah-Balingian and 470 million tonnes in the Merit-Pila region in Kapit.

Sources:

Bernama, "Brunei To Buy Energy From Sarawak" dated 4 Oct 2008 in Bernama website [downloaded on 6 Oct 2008], available athttp://www.bernama.com/bernama/v5/newsgeneral.php?id=362582.

Brunei Times, "Brunei to buy power from Sarawak" dated 5 October 2008  in the Brunei Times website [downloaded on 6 October 2008], available athttp://www.bt.com.bn/en/home_news/2008/10/05/brunei_to_buy_power_from_sa...







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