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 ?
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
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
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 2024: the Reference Period covers data for the months of September, October and November 2023.
-
For Q2 2024: the Reference Period covers data for the months of December 2023, January and February 2024, and so on.
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 2024 will be released in January 2024 and is applicable from January to March 2024
Step 1
-
Go to eStatistik website at https://newss.statistics.gov.my/newss-portalx/ep/epLogin.seam
-
Under "Publications", click on "Free Download"
%20PEGT%20-%20Step%201.png)
-
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.
%20PEGT%20-%20Step%201.png)
-
Refer to the table 9 sheet tabs for the monthly LNG values and volumes.
Step 2
In Table 9, look for "Liquefied Natural Gas" under Metal and Minerals to retrieve the LNG Export quantity (in RM million) and the value in '000 tonne.
%20PEGT%20-%20Step%202.png)
Step 3
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)
|
