KUALA LUMPUR, May 3 (Bernama) -- Efforts must be made to find analternative energy resource to diesel, Plantation Industries andCommodities Minister Datuk Peter Chin Fah Kui said.

He said this was necessary as diesel supply was expected to decline infuture while its price would rise.

"The situation will affect the country's development," he said in awritten reply to Senator Datuk Dayang Mahani Tun Pengiran Ahmad Raffae inthe Dewan Negara, Tuesday.

Dayang Mahani wanted to know whether it was time for the country toproduce diesel from palm oil since Malaysia is the largest producer ofpalm oil.

Chin said Malaysia has many resources and the technology to find analternative to diesel, such as producing biodiesel from palm oil.

He said Malaysia produced 13.9 million tonnes of crude palm oil last yearof which 12.27 million tonnes were exported.

In response to a question from Senator Datuk Dr Chin Fook Weng, Chin saidthe production and usage of biofuel in the country could be carried outthrough two strategies, one by mixing palm oil with diesel and the otherthrough refined bleached and deodorised palm olein or "methyl ester".

He said there was also a potential for Malaysia to export biodiesel toEuropean countries in view of the high diesel price there at RM5 perlitre.

On Malaysia's energy reserves, Chin said it has 4.84 billion barrels ofcrude petroleum and 87 trillion cubic feet of natural gas which could lastfor 17 and 39 years, respectively.

-- BERNAMA