KUALA LUMPUR: The government is studying a proposal to create a strategic petroleum reserve as part of the country’s long-term energy security planning, following global supply concerns.
The proposal was among the matters being discussed by the government as it assesses long-term preparedness following the supply disruption caused by the closure of the strategic Strait of Hormuz route for 48 days, said deputy economy minister Shahar Abdullah.
Speaking in a Bernama TV interview, Shahar said the reopening of the Hormuz route would not lead to immediate stabilisation of oil prices due to damage to refinery infrastructure in the Middle East.
“Although the route has been reopened, the recovery process will take time as the refinery and production facilities will need between four months and six months to return to full operation,” he said.
He said the disruption also exposed structural weaknesses in Malaysia’s energy landscape, particularly the increasing reliance on petroleum product imports.
“Malaysia, which was previously a net exporter, has now become a net importer due to declining domestic production and increasing consumption, with demand estimated at around 800,000 barrels per day compared to production of around 400,000 barrels per day.
“This supply gap makes us more vulnerable to external shocks, and long-term measures such as strategic reserves and diversification of supply sources need to be given serious attention,” he said.
