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Energies
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  • Open Access

15 April 2015

The Use of Energy in Malaysia: Tracing Energy Flows from Primary Source to End Use

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State Key Laboratory of Power Systems, Department of Thermal Engineering, Tsinghua-BP Clean Energy Centre, Tsinghua University, Beijing 100084, China
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Author to whom correspondence should be addressed.

Abstract

Malaysia is a rapidly developing country in Southeast Asia that aims to achieve high-income country status by 2020; its economic growth is highly dependent on its abundant energy resources, especially natural gas and crude oil. In this paper, a complete picture of Malaysia’s energy use from primary source to end use is presented by mapping a Sankey diagram of Malaysia’s energy flows, together with ongoing trends analysis of the main factors influencing the energy flows. The results indicate that Malaysia’s energy use depends heavily on fossil fuels, including oil, gas and coal. In the past 30 years, Malaysia has successfully diversified its energy structure by introducing more natural gas and coal into its power generation. To sustainably feed the rapidly growing energy demand in end-use sectors with the challenge of global climate change, Malaysia must pay more attention to the development of renewable energy, green technology and energy conservation in the future.

1. Introduction

Malaysia is a small developing country located in Southeast Asia near the Equatorial region. It has a total landmass of 330,290 square kilometers and had a population of 29.72 million in 2013 [1]. The gross domestic product (GDP) per capita of Malaysia in 2013 was 10,538 US dollars (current price) [2]. In 1991, Malaysia’s government announced a plan to achieve high-income country status by 2020 [3], and in 2011, it launched an Economic Transformation Program (ETP) to meet this target [4]. A comprehensive study of Malaysia’s energy use can provide a typical case for understanding the energy development in small developing countries and in Southeast Asia.
Previous studies have investigated various aspects of Malaysia’s energy issues. For example, Ong, Mahlia and Masjuki reviewed Malaysia’s energy scenarios and sustainable energy use [5]. Rahim and Liwan reported the oil and gas trends and their implications [6]. Gan, Komiyama and Zhidong provided a low carbon society outlook up to 2035 [7]. Ali and Shekarchian summarized the existing and future energy sources for electrical power generation [8,9]. Saidur and his team performed several studies involving energy and exergy analysis in various end-use sectors [10,11,12,13,14]. In addition, Chua and Oh provided a review of Malaysia’s national energy development by introducing key policies, agencies, programs and international relationships [15,16]. However, because of the lack of systematic links among the various parts and aspects of Malaysia’s energy system and the missing technical details of special stages or sectors along the energy flows in these studies, there is a need for further studies to provide a more comprehensive and deeper understanding of Malaysia’s energy use.
This study attempts to present a complete picture of the current status and ongoing trends of Malaysia’s energy use by mapping Malaysia’s energy flows into the form of a Sankey diagram and discussing the ongoing trends of the energy flows by analyzing its influencing factors including demand, resources availability, technology choice, and policy adjustment.
The content of this paper is organized as follows:
(1)
An introduction of the system approach for analyzing the use of energy in Malaysia and the methodology and data input for mapping the Sankey diagram of energy flows in Section 2;
(2)
A discussion of current status of the Malaysian energy supply and energy end-use based on the mapping results in Section 3;
(3)
A discussion of ongoing trends of Malaysia’s energy flows by analyzing the influencing factors in Section 4;
(4)
Conclusions and suggestions for future work in Section 5.

2. Methodology

2.1. System Approach

The framework of the system approach used in this study is illustrated in Figure 1, the physical flow of energy is the key part of the analysis as involving with various stages, energy types and energy technologies of energy use in Malaysia. To observe the energy use of Malaysia, we mapped the whole physical flow of energy onto a Sankey diagram with details of the production, import and export, transformation and final consumption of various energy, as introduced in Section 2.2.
Referring to the literatures mentioned in Section 1 and the methodology used in a previous study by the authors [17], we concluded that the development of Malaysia’s energy flows is mainly influenced by four key factors as follows:
Figure 1. The framework of the system approach.
(1)
Energy demand: In the end-use sector, energy is consumed to provide energy services, like passenger transport, cooling comfort and illumination. The variation of energy demand will influence energy supply. Currently, the manufacturing sector, transportation sector and domestic sector (residential, commercial and agriculture) are the major energy consumers in Malaysia.
(2)
Energy resource availability: The energy supply structure of a region is dependent on its energy resource availability, including domestic production and imports. The lack of energy resource availability will require restricting energy demand. Though Malaysia has abundant energy resources, to ensure more reliable energy supply and strategy purpose, some energy resources are imported.
(3)
Technology choice: Adoption of different technologies will not only influence the energy supply structure, but also the environmental emissions. The major uncertainty of technology choices in Malaysia is the future development of the electricity generation technologies, which will mainly be decided by the availability and the cost of energy resources. Besides, biodiesel may be an important alternative energy for vehicle fuels in Malaysia.
(4)
Policy adjustment: Policymakers can implement policies and enact acts to regulate or intervene in energy supply and energy consumption for strategic purposes. The main aim of the Malaysian energy policy is to ensure energy security. The previous policy adjustments have successfully optimized Malaysia’s energy structure. Along with the climate change issue, the development of renewable energy and nuclear power are hot topics.

2.2. Tools and Data Input for Mapping Energy Flows

The Sankey diagram has become an important graphical tool for mapping energy flows. In an energy Sankey diagram, various types of energy flows are illustrated in different colors with the width indicating energy quantities. Schmidt has provided a comprehensive review of Sankey diagrams in energy and material flow management [18].
The method used to map energy flows into a Sankey diagram in this study was mainly based on previous studies on global energy flows [19] and China’s energy flows [20,21], but adjusted to take into account the specifics of Malaysia’s energy system and also the data availability.
Using this method, the whole energy system of Malaysia was divided into three stages: (1) Primary supply; (2) Secondary supply; and (3) End-use. In addition, Non-Energy Use was excluded from the energy flowing to End-use in the Primary supply and Secondary supply. The energy flows and energy types involved in each stage are shown in Table 1, and the energy types involved are listed in Table 2.
Table 1. Main sections considered in the mapping.
Table 1. Main sections considered in the mapping.
StageEnergy flowsDescription [22]
Primary SupplyPrimary ProductionRefers to the amount of primary energy resources extracted. Data for natural gas excludes the amount of re-injected and flared gas. Gross production of hydropower is calculated by primary energy equivalent quantity.
Gas Flaring and Reinjection UseRefers to the amount of gas flared, re-injected into the gas fields and use for production purposes.
Imports and ExportsRefers to the amount of primary and secondary energy obtained from or supplied to other countries.
BunkersRefers to the amount of fuels delivered to ocean-going ships of all flags engaged in international traffic.
Stock ChangesRefers to the difference between the amount of fuels in stocks at the beginning and end of the year and should ideally cover producers, importers, and industrial consumers. At this stage, however, only oil companies stocks are taken into account.
Secondary SupplyGas PlantsRefers to the input of natural gas into LNG, MDS and GPP-LPG plants and their respective outputs.
RefineriesRefers to the input of energy resources into refineries and their respective outputs.
Power PlantsRefers to the input of energy resources into power plants and electricity outputs.
End-useResidentialRefers to energy used within households.
CommercialRefers to energy used within commercial departments, including public buildings.
IndustrialIndustrial is a very broad-based sector, ranging from manufacturing to mining and construction. Diesel sales through distributors are assumed to be industrial consumers.
TransportationRefers to all sales of motor gasoline and diesel from gas stations and sales of aviation fuel. It also includes diesel and motor gasoline sold directly to the government and military.
AgricultureCovers agricultural, forestry and fishing.
Non-energy UseRefers to products resulting from the transform processes for non-energy purpose (bitumen/lubricants, asphalt/greases) and use of energy products (such as natural gas) as industrial feed stocks.
Table 2. Main energy types considered in the mapping.
Table 2. Main energy types considered in the mapping.
Energy typeDefinition [22]
Primary energyCrude oilA natural product that is extracted from mineral deposits and that consists essentially of many different non-aromatic hydrocarbons.
Natural gasA mixture of gaseous hydrocarbons (mainly methane), which occur in either gas fields or in association with crude oil fields.
Coal and cokeCoal in the energy balance is mainly bituminous with some anthracite. Coke is obtained from coal by heating at high temperature.
HydropowerThe inferred primary energy available for electricity.
Secondary energyAviation gasoline (AV)Aviation fuel. A special blended grade of gasoline for use in aircraft engine of the piston type. The distillation range is 30 °C to 250 °C.
Aviation turbine fuel (ATF)Aviation Fuel. Fuel for use in aviation gas turbines mainly refined from kerosene. The distillation range is between 150 and 250 °C.
DieselDistillation falls within 200 °C and 340 °C. Diesel fuel for high-speed diesel engines is more critical of fuel quality than diesel for stationary and marine diesel engines. Marine oil usually consists of a blend of diesel oil and some residual (asphaltic) materials.
ElectricityElectricity generated.
Fuel oilHeavy distillates, residues or blends of these, used as fuel for production heat and power. Fuel oil production at the refinery is essentially a matter of selective blending of available components rather than of special processing. Fuel oil viscosities vary widely depending on the blend of distillates and residues.
KeroseneA straight-run fraction from crude oil, with a boiling range from 150 to 250 °C. Its main uses are for domestic lighting and cooking.
Liquefied natural gas (LNG)Natural gas that is liquefied for ocean transportation and export.
Liquefied petroleum gas (LPG)A mixture of propane and butane gases that are held in the liquid state by pressure or refrigeration.
Motor gasoline (Petrol)Petroleum distillate used as fuel in spark-ignition internal combustion engines. The distillation range is within 30 °C and 250 °C.
Refinery gasThe gas released during the distillation of crude oil and contains methane, ethane, propane and butane. Most refinery gas is retained in the refinery and used as fuel in plant operations.
Non-energy useNon-energy productsNaphtha, bitumen and lubricants, which are obtained by the refinery process from petroleum but used for non-energy purposes. Naphtha is a refined or partly refined light distillate, which is further blended into motor gasoline or used as feedstock in the chemical industry. Bitumen is a viscous liquid or solid, non-volatile and possesses waterproofing and adhesive properties. Lubricating oil is used for lubricating purposes and has a distillation range from 380 to 500 °C.

2.3. Data Input for Mapping Energy Flows

The original data were mainly based on the Malaysia Energy Balance 2011 table and other studies. To establish an energy balance for mapping, some of the input data should first be treated.

2.3.1. Malaysia National Energy Balance 2011 and the Data Treatment

The Malaysia National Energy Balance 2011 (Table 3) was published by the Malaysia Energy Commission in 2013 [22]. The energy data in this table are classified in three stages, including Primary Supply, Transformation and Secondary Supply and End Use, in addition to being classified into various energy types. Losses and Own Use and Statistical Discrepancy are also presented in Table 3.
Table 3. Malaysia National Energy Balance 2011.
Table 3. Malaysia National Energy Balance 2011.
Energy sourceNatural gasLNGCrude oil 1Petroleum productsCoalHydropowerBiodieselElectricity
PetrolDieselFuel oilLPGKeroseneATF AVNon-FuelRefinery gas
Primary supply, input (+) and output (−)
1. Primary Production69.80.028.30.00.00.00.00.00.00.00.01.81.90.20.0
2. Gas Flaring−13.10.00.00.00.00.00.00.00.00.00.00.00.00.00.0
3. Imports7.00.09.34.23.81.50.50.10.51.00.013.30.00.00.0
4. Exports−1.1−26.9−11.50.0−4.5−0.3−1.0−0.7−0.7−2.30.0−0.10.0−0.10.0
5. Bunkers0.00.00.00.00.0−0.20.00.00.00.00.00.00.00.00.0
6. Stock Change0.00.0−1.70.01.50.00.00.0−0.8−0.60.0−0.40.0−0.10.0
7. Statistical0.00.00.30.00.00.00.00.00.00.00.00.10.00.00.0
8. Total Primary Supply62.6−26.924.84.20.80.9−0.5−0.5−1.0−1.90.014.81.90.00.0
Transformation and secondary supply, input (+) and output (−)
9. Gas Plants
9.1 LNG−35.827.90.00.00.00.00.20.00.00.00.00.00.00.00.0
9.2 MDS−0.90.00.00.00.10.00.00.00.00.30.00.00.00.00.0
9.3 GPP-LPG 2,3−4.10.00.00.00.00.02.40.00.00.00.00.00.00.00.0
9. Gas Plant Subtotal−40.727.90.00.00.10.02.60.00.00.30.00.00.00.00.0
10. Refineries0.00.0−24.83.68.90.60.70.43.54.61.70.00.00.00.0
11. Power station and self-generation
11.1 Hydropower Stations0.00.00.00.00.00.00.00.00.00.00.00.0−1.90.00.7
11.2 Thermal Stations−11.00.00.00.0−1.0−1.10.00.00.00.00.0−13.00.00.09.6
11.3 Self-Generation−1.70.00.00.0−0.20.00.00.00.00.00.00.00.00.00.4
11. Power Station Subtotal−12.70.00.00.0−1.2−1.10.00.00.00.00.0−13.0−1.90.010.7
12. Losses & Own Use−0.6−1.10.00.00.00.00.00.00.0−1.7−1.60.00.00.0−1.1
13. Statistical Discrepancy0.00.00.00.40.00.00.00.10.10.00.00.00.00.0−0.3
14. Total Secondary Supply−54.126.9−24.84.07.9−0.53.30.63.63.00.0−13.0−1.90.09.3
End use
15. Residential0.00.00.00.00.00.00.80.00.00.00.00.00.00.02.0
16. Commercial0.00.00.00.00.40.00.60.00.00.00.00.00.00.03.2
17. Industrial4.30.00.00.21.30.30.20.00.00.00.01.80.00.04.0
18. Transportation0.30.00.08.06.20.00.00.02.60.00.00.00.00.00.0
19. Agriculture0.00.00.00.00.90.00.00.00.00.00.00.00.00.00.0
20. Non-Fuel3.90.00.00.00.00.01.30.00.01.20.00.00.00.00.0
21. Total End Use8.50.00.08.28.70.42.90.02.61.20.01.80.00.09.2
1. Crude oil production includes condensates comprising pentane and heavier hydrocarbons; 2. GPP-LPG extract liquid products such as condensate, ethane, butane and propane from natural gas; 3. Butane and propane as MTBE feedstock are presented as non-energy use under LPG column.
The energy Sankey diagram mapped in this study is an energy allocation diagram that only shows the energy allocation in a total energy balance and does not reflect any loss. The Primary Energy Quantity (PEQ) of each energy flow was required for mapping. The PEQ was defined as follows:
P E Q = S Q K P E Q
In the equation, KPEQ is defined as below:
K P E Q = I n p u t P E Q O u t p u t S Q
KPEQ reflects the transformation factor, usually KPEQ ≥ 1. The value of KPEQ shows the unit of primary energy consumed to produce 1 unit of the secondary energy. We defined KPEQ of primary energy as 1.
InputPEQ: Total of resources input into the transformation sector counted in Primary Energy Quantity.
OutputSQ: Total of production output from the transformation sector counted in Standard Quantity. SQ means Standard Quantity.
The transformation factors used in the mapping are given in Table 4.
Table 4. The transformation factors used in the mapping.
Table 4. The transformation factors used in the mapping.
Energy carrier K P E Q
Primary energyCrude oilNatural gasCoalHydropower
LNG1.3401.3400
Petrol1.171.17000
Diesel1.191.160.0300
Fuel Oil1.171.17000
LPG1.550.231.3200
Kerosene1.311.090.2300
ATF & AV1.171.17000
Non-Fuel1.271.110.1600
Electricity3.300.291.401.410.20
Based on these factors and the original energy balance, a processed energy balance is provided in Table 5, in which all of the presented energy values represent the Primary Energy Quantity. These data were used as the input data for mapping with the energy Sankey diagram.

2.3.2. Other Energy Data

The Malaysia National Energy Balance 2011 table does not provide energy data for End-use. The data required for mapping End-use were collected from various literature sources, as listed in Table 6.
Table 5. Input data for mapping energy allocation diagram of Malaysia (2011).
Table 5. Input data for mapping energy allocation diagram of Malaysia (2011).
Energy sourceNatural gasLNGCrude oilOthersPetroleum productsCoalHydropowerElectricity
PetrolDieselFuel oilLPGKeroseneATF AVNon-Fuel
Primary supply, input (+) and output (-)
1. Primary Production69.80.028.70.00.00.00.00.00.00.00.01.91.90.0
2. Gas Flaring−13.10.00.00.00.00.00.00.00.00.00.00.00.00.0
3. Imports7.00.09.20.24.94.51.70.80.20.61.313.40.00.1
4. Exports−1.1−36.0−11.6−0.10.0−5.3−0.4−1.5−0.9−0.8−2.9−0.10.00.0
5. Bunkers0.00.00.00.00.00.0−0.20.00.00.00.00.00.00.0
6. Stock Change0.00.0−1.70.00.01.80.00.00.0−1.0−0.8−0.40.00.0
7. Total Primary Supply62.6−36.024.70.14.91.01.1−0.7−0.7−1.2−2.414.81.90.1
Transformation, input (+) and output (-)
8. Gas Plants
8.1 LNG−36.236.00.00.00.00.00.00.30.00.00.00.00.00.0
8.2 MDS−0.90.00.00.00.00.20.00.00.10.00.50.00.00.0
8.3 GPP LPG−4.10.00.00.00.00.00.04.10.00.00.00.00.00.0
8. Gas Plant Subtotal−41.236.00.00.00.00.20.04.40.10.00.50.00.00.0
9. Refineries0.00.0−24.7−0.14.710.50.70.80.64.23.40.00.00.0
10. Power Station and Self-Generation
10.1 Hydropower Stations0.00.00.00.00.00.00.00.00.00.00.00.0−1.91.9
10.2 Thermal Stations−11.10.00.00.00.0−1.2−1.30.00.00.00.0−13.00.026.6
10.3 Self-Generation−1.70.00.00.00.0−0.20.00.00.00.00.00.00.02.0
10. Power Station Subtotal−12.90.00.00.00.0−1.4−1.30.00.00.00.0−13.0−1.930.4
11. Total Secondary Supply−54.136.0−24.7−0.14.79.3−0.65.20.74.23.9−13.0−1.930.4
End use
15. Residential0.00.00.00.00.00.00.01.20.00.00.00.00.06.5
16. Commercial0.00.00.00.00.00.50.00.90.00.00.00.00.010.5
17. Industrial4.30.00.00.00.21.50.40.30.00.00.01.80.013.4
18. Transportation0.30.00.00.09.47.30.00.00.03.00.00.00.00.1
19. Agriculture0.00.00.00.00.01.00.00.00.00.00.00.00.00.1
20. Non-Fuel3.90.00.00.00.00.00.02.00.00.01.50.00.00.0
21. Total End Use4.60.00.00.09.510.30.52.50.03.00.01.80.030.5
Table 6. Other data required for the mapping.
Table 6. Other data required for the mapping.
ItemData
IndustrialAccording to the energy audit launched under the Malaysian Energy Efficiency Improvement Program (MIEEIP) in 2005 [23], most of the energy input into the industrial sector was consumed by eight industries. Therefore, we could consider the industrial energy input equally based on these ratios: (1) Cement 47.6%; (2) Steel & iron 19.2%; (3) Pulp and paper 13.9%; (4) Food 10.6%; (5) Glass 2.9%; (6) Wood 1.4%; (7) Rubber 1.1%; (8) Ceramic 0.9%; and (9) Other 2.3%.
CommercialElectricity and LPG were the main energy types consumed in the commercial sector. We assumed that LPG was used as cooking gas [12]. The end use of electricity could be allocated as (1) air-conditioning 64%; (2) illumination 12% and (3) others 24%.
ResidentialElectricity and LPG were the main energy types consumed in the residential sector. We assumed that LPG was used as cooking gas [11]. The end use of electricity could be allocated as (1) refrigeration 21.1%; (2) cooking equipment 14.7%; (3) air-conditioning 11.9%; (4) washing machines 10.5%; (5) illumination 5.1% and others 36.7%.
TransportationFour main vehicles were listed, including motorcars, trucks, buses and planes. Motorcycles, rail transport, and ships were ignored as they consume only a small portion of energy in Malaysia. We assumed that all petrol was consumed within gasoline cars. In addition, we also assumed diesel was consumed within only diesel cars, buses and trucks [24]: (1) motorcars (petrol) 100%; (2) motorcars (diesel) 6.6%; (3) buses (diesel) 5.5%; and (4) trucks (diesel) 87.9%.
AgricultureAgricultural covers agricultural, forestry and fishing activity. This only contributes a very small portion of energy consumption in Malaysia.

3. Current Status

Based on the method and data input introduced in Section 2.2, Malaysia’s energy allocation diagram was mapped as illustrated in Figure 2. In addition, the oil products portion was magnified into an oil product flow diagram for Malaysia as illustrated in Figure 3. Through these diagrams, the whole picture of Malaysia’s energy use is presented, and the main features of Malaysia energy use are summarized as follows:
(1)
Malaysia’s energy supply mainly came from crude oil, natural gas, coal and hydropower. Most of the crude oil and natural gas supply in Malaysia came from domestic production, whereas the vast majority of coal was imported.
(2)
Malaysia is a net energy exporting country, whereas crude oil and natural gas were the main energy types exported, and 97% of natural gas was exported in LNG form.
(3)
Though Malaysia was a net exporter of crude oil, it was a net importer of oil products, especially petrol (gasoline). Half of the petrol consumed in the end-use sectors was imported, and no petrol was exported.
(4)
The electricity supply of Malaysia mainly relied on domestic power generation, and most of the natural gas (74% of the supply), most of the coal (88% of the supply) and all the hydropower were used for electricity generation.
(5)
Electricity (49%), oil products (41%), natural gas (7%) and coal (3%) were the main energy forms for end-use. Each main end-use sector, including the transportation sector, industrial sector and domestic sector (residential, commercial and agriculture), accounted for approximately one-third of the energy consumption. The vast majority of oil products (69%) were consumed in the transportation sector.
Figure 2. Malaysia energy allocation diagram, 2011.
Figure 3. Malaysia energy allocation of crude oil and oil products diagram in 2011.
The details of the current status of energy use in Primary supply, Secondary supply and End-use are further introduced in the following sections.

3.1. Primary Supply

In 2011, a total of 102.3 Mtoe of energy was produced in Malaysia, and for the most part this comprised natural gas and crude oil, which accounted for 96.3% of energy production. A total of 42.3 Mtoe of energy was imported, and 57.6 Mtoe of energy was exported. Natural gas (mainly in LNG form), crude oil and oil products were the main exports, and coal and oil products were the main imports. The structure of Malaysia’s energy production, imports and exports are illustrated in Figure 4.
Figure 4. The structure of Malaysia’s energy production, imports and exports in 2011.
In 2011, Malaysia produced 28.7 Mtoe of crude oil, which places the country 28th in the world and 4th in the Asia-Pacific area, ranking only after China, Indonesia and India [25]. The Malay Peninsula contributed 43%, whereas Sabah and Sarawak contributed 24% and 34% of the total. In 2011, 13.9 Mtoe of oil products were imported, and 11.8 Mtoe oil products were exported. Non-fuel use products imports and exports were ignored. Petrol and diesel were the most important oil products in Malaysian energy consumption, especially in the transportation sector. Diesel was the main export, whereas petrol was the main import. In addition, 51% of the petrol supply relied on imports. The import and export structure of oil products is shown in Figure 5 and Figure 6, respectively.
In 2011, Malaysia produced 69.8 Mtoe of natural gas, which places it 11th in the world and 3rd in the Asia-Pacific Area [25], ranking after China and Indonesia. The Malay Peninsula contributed 33%, whereas Sabah and Sarawak contributed 61% and 6% of the total. LNG was the main form for natural gas export in Malaysia in 2011. In 2011, 97% of natural gas was exported through liquefaction, whereas the remainder was transferred via pipelines. LNG exports accounted for 62.5% of total Malaysia energy exports. All natural gas was imported through the pipeline system. Malaysia was the third-largest LNG exporter [25], ranking only behind Qatar and Indonesia. In 2011, 36.0 Mtoe natural gas was liquefied. Most of this LNG was exported to Japan, South Korea, Taiwan and China, which contributed 61%, 21%, 12% and 5.5% of LNG export volume [26]. The Malaysia International Shipping Corporation Berhad which has 29 LNG carriers, making it currently the world’s largest single owner of an LNG fleet, was in charge of the transportation of this LNG [27].
Figure 5. The structure of Malaysia’s oil products imports in 2011.
Figure 6. The structure of Malaysia’s oil products exports in 2011.
Malaysia coal supply mainly relied on imports from Indonesia and Australia [16]. In 2011, 92.5% of the coal supply was imported, which accounted for 31.7% of Malaysia total energy imports, and the domestic production was only 1.9 Mtoe.
Hydropower is the only renewable energy that is commercially available on a large scale in Malaysia. Although Malaysia had a hydropower potential of 22,000 MW [16], of which 20,000 MW was distributed in Sarawak [28], only 3015 MW was utilized in 2011 [22]. This was basically due to the high capital investment required and social-political issues. Hydropower accounted for 1.9% of Malaysia domestic energy production.

3.2. Secondary Supply

In 2011, 24.7 Mtoe of crude oil and 5.3 Mtoe of natural gas were input into refineries and gas plants. As a result of transformation, 24.1 Mtoe of oil products were produced. In addition, 5.9 Mtoe of non-energy use was also produced in this section. Figure 7 illustrates the output structure of refineries and gas plants in Malaysia.
Figure 7. Output structure of refineries and gas plants in 2011.
Figure 8. Input structure of power plants in Malaysia in 2011.
A total of 30.5 Mtoe of primary energy was used for electricity generation in 2011. The main fuels consumed in the generation sector were coal and natural gas, which contributed 86% of energy for electricity generation. The others included hydropower, diesel and fuel oil. The energy input structure of power plants is given in Figure 8.

3.3. End-Use

According to Figure 1, a total of 62.7 Mtoe of energy was consumed in the Malaysian society in 2011 by the industrial, residential, commercial, agriculture and transportation sectors. The industrial sector was the largest energy consumer in 2011, followed by the transportation sector, which mainly consumed oil products, and then the commercial sector and residential sector. The agriculture sector only contributed 2% of primary energy consumption. The share of the industrial sector, transportation sectors, and domestic sectors (commercial, residential and agriculture sector) were very close and accounted for approximately one-third of end-use energy consumption in Malaysia in 2011, as illustrated in Figure 9.
Figure 9. End energy use in each sector in Malaysia in 2011.
Electricity was the main energy form consumed in the end-use sectors. In 2011, 30.5 Mtoe of electricity was consumed, followed by 25.9 Mtoe of oil products, with 76% of them consumed by the transportation sector. Natural gas and coal were typically consumed in the industrial sector as a fuel to provide heat steam and fluid, which accounted for 4.3 Mtoe and 1.8 Mtoe of consumption, respectively. The end-use sector energy consumption could also be expressed in primary energy form, as shown in Figure 10, Figure 11 and Figure 12.
Electricity was the main energy form used in the commercial sector in 2011. In 2011, 10.5 Mtoe of electricity was consumed in this sector. Air-conditioning, illumination and others were the main energy type of consumption in the commercial sector. In addition, 0.9 Mtoe of LPG was used as cooking gas in restaurants and hotels. The energy consumption structure in the commercial sector is given in Figure 13.
Figure 10. Energy consumption in end-use sectors in Malaysia in 2011.
Figure 11. Energy consumption in end-use sectors in Malaysia in 2011.
Figure 12. The structure of energy consumption in end-use sectors in Malaysia in 2011.
Figure 13. Commercial energy use in Malaysia in 2011.
In 2011, residential sector consumed 6.5 Mtoe of electricity. This energy consumption was mainly due to refrigeration, cooking equipment, air-conditioning, washing machines, illumination and others. In addition, 1.2 Mtoe of LPG was consumed as cooking gas. The energy consumption structure in the residential sector is given in Figure 14.
In 2011, energy input into the industrial sector was 21.9 Mtoe. Electricity was the main energy form in this sector, followed by natural gas, coal and oil products. The cement industry, steel and iron industry, pulp and paper industry and food production industry were the main energy consumers in the industrial sector, which consumed 92% of industrial energy. The energy consumption structure in the industrial sector is given in Figure 15.
Figure 14. The structure of residential energy consumption in Malaysia in 2011.
Figure 15. Industrial sector energy consumption in Malaysia in 2011.
Agriculture only consumed 1.0 Mtoe of diesel and 0.1 Mtoe of electricity in 2011, which accounted for less than 2% of total end-use energy consumption. The transportation sector was the largest oil products consumer, especially petrol and diesel. In 2011, 19.7 Mtoe of oil products and 0.3 Mtoe of natural gas were consumed in the transportation sector. Motorcars were the largest consumer, as followed by trucks and buses. In addition, there was also 3.0 Mtoe of aviation fuel consumption. The energy consumption structure in the transportation sector is given in Figure 16.
Figure 16. The structure of energy consumption in the transportation sector in Malaysia in 2011.

5. Conclusions and Suggestions

In this work, a comprehensive description of Malaysia’s energy use was presented by mapping energy flow Sankey diagrams and analyzing ongoing trends of main factors influencing these energy flows. According to the results, currently Malaysia is a net energy exporter, and crude oil and natural gas are the main exports. Most of the natural gas was exported in LNG form. Coal and oil products are the main imports. The vast majority of the coal supply in Malaysia is imported. The lack of refineries also has required many petrol imports to satisfy domestic needs. Coal, natural gas, oil products and hydropower are the main fuels used for electricity generation. Electricity, oil products especially petrol and diesel, natural gas and coal were the main energy forms in the end-use sectors. The shares of the industrial, transportation and domestic sectors are almost the same, accounting for approximately one-third of the energy consumption in Malaysia.
In the past, Malaysia has successfully optimized its energy structure to ensure energy security. In 1980, Malaysia’s government launched the National Diversification Policy to reduce oil product consumption in electricity generation and replace it with natural gas, coal and hydropower. The share of oil products decreased from 88% to 10% by 2000, whereas the share of natural gas increased from 1% to 75%. After 2000, the share of coal-fired increased from 10% to 47% in 2011, and the share of natural gas and oil products decreased to 39% and 7%, respectively. In 2011, hydropower contributed to 7% of electricity generation. However, except for hydropower, there is no renewable energy form that is large enough to be illustrated in the energy Sankey diagram.
For a sustainable development in the long term, the Malaysian government has launched a series of plans to encourage the utilization of renewable energy. It is expected that by 2050 renewable energy will contribute 56% of electricity generation, whereas 43% will be contributed by large hydropower. However, the development of renewable energy has been much slower than expected. In addition, Malaysians still lack of energy conservation awareness because of the low energy prices. To address the challenge of global climate change, more emphasis must be placed on the utilization of renewable energy, green technology and energy conservation in Malaysia, and the energy subsidy for fossil fuel must be gradually reduced.
The lack of energy data and information in Malaysia were the main difficulties in completing this study. Although the energy balance was given, more detailed data are difficult to obtain because of the lack of consistent data standards in the various departments. More attention to data statistics and data publicity is requited to encourage more studies on Malaysia’s energy system in the future.

Acknowledgments

The authors gratefully acknowledge the financial support from the BP Company in the context of the Phase II Collaboration between BP and Tsinghua University.

Author Contributions

Chinhao Chong coordinated the main theme of this paper and wrote this manuscript. Linwei Ma and Pei Liu discussed the research results and commented on the manuscript. Final review was done by Weidou Ni and Zheng Li. All the authors read and approved the final manuscript.

Abbreviations

AV
Aviation fuel
ATF
Aviation Turbine Fuel
bbl/d
barrel per day
GPP
Gas Processing Plant
LNG
Liquefied Natural Gas
LPG
Liquefied Petroleum Gas
MDS
Middle Distillate Synthesis
MMscfd
Metric million standard cubic feet per day
Mtoe
Million ton of oil equivalent
PEQ
Primary Energy Quantity
SQ
Standard Quantity
Tcf
Trillion cubic feet

Conflicts of Interest

The authors declare no conflict of interest.

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