Gas Pricing & Tariff

Malaysia Reference Price (MRP) is the weighted-average price of LNG Free-on-Board exported from Malaysia as declared by the Department of Statistics, Malaysia (DOSM). 
Why MRP ?
 
 

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MRP PROVIDES A GAS-TO-GAS PRICING ALTERNATIVES

 

  • Standardisation of price marker across the gas value chain
  • Shifting to LNG market is appropriate because the energy landscape in the SEA region will depend more on LNG as an alternative to fulfill long term demand

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MRP IS MARKET
DRIVEN

 

  • MRP represents the prices of all LNG exported out of Malaysia
  • Its movement is aligned with LNG market prices, allowing all parties to benefit fairly from the return of LNG sales
  • There is a lagging effect of 6-7 months between Quarterly MRP and Brent

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AUTHORITATIVE & RELIABLE PRICE
MARKER

 

  • MRP reflects the true value of Malaysian gas i.e., actual export declaration Customs Dept and DOSM
  • Reliability of MRP as a price marker lies in the longevity of supply available for LNG exports
MRP-based Quarterly Pricing Mechanism
 
Gas price to Buyers will be based on the Weighted Average Price (WAP) of LNG exports as the primary input. This is derived by dividing the total export value (in RM) of LNG by the total export volume (in MT) of LNG for the Reference Period.
 
The MRP data is sourced from the Department of Statistic, Malaysia's (DOSM) website which publishes the Monthly External Trade Statistic Report as tables titled "Export Volume of Major and Selected Commodities" and "Export Value of Major and Selected Commodities". Click here for more on how to source for MRP Data.
 
Reference Periods:
  • For Q1 2023: the Reference Period covers data for the months of September, October and November 2022.
  • For Q2 2023: the Reference Period covers data for the months of December 2022, January and February 2023, and so on.
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Click to view enlarged here
 
 
The Applicable Price will be released and applied at the beginning of every new quarter of the calendar year e.g., The price of Q1 2023 will be released in January 2023 and is applicable from January to March 2023
 
 

Historical Quarterly MRP

 
Step 1

Step 1

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  • For Main Category, select “Economy” from the drop-down menu
  • For Sub-Category, select “External Trade” from the drop-down menu
  • Under “Title of Publications”, select “Monthly External Trade Statistics, Malaysia Click on “Jadual / Table” to download the MS Excel sheet.
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  • Refer to the table 16 and Table 17 sheet tabs for the monthly LNG values and
    volumes.
Step 2

Step 2

In the Table 16 sheet tab, look for "Liquefied Natural Gas" under Type of Commodities to retrieve the LNG Export quantity in RM million.
 
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Step 3

Step 3

In the Table 17 sheet tab, look for “Liquefied Natural Gas” under Type of Commodities to retrieve the LNG Export value in ‘000 tonne.
 

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Step 4

Step 4

Calculation of 3-month average MRP:
 
MRP (RM/MMBtu) = LNG Export FOB Value (RM) for 3 months / [ LNG Export Quantity (tonne) for 3 months x Conversion Factor* ]
 
*52MMBtu/tonne
 
What is the Quarterly MRP-based domestic gas price formula?

 

Malaysia Reference Price (MRP) Formula
MRP x (1+ α) + T
Molecule cost at entry point of (PGU)
MRP →
Weighted-average FOB price of exports of LNG from Malaysia, published by Department of Statistics Malaysia (DOSM)
α →
competitively negotiated parameter between Buyer & Seller

 

PGU Tariff
T →
PGU transportation tariff (Approved and published by ST)
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