KUALA LUMPUR (June 12, 2012): Gas Malaysia Bhd, which made a strong debut on the main market of Bursa Malaysia yesterday, plans to start discussions with Petroliam Nasional Bhd (Petronas) soon for additional supply of gas after 2016, said its managing director Datuk Muhamad Noor Hamid.
"At the moment, we have not discussed with Petronas. Our plan is to have discussion with them soon for additional volume of gas coming from the liquefied natural gas regasification terminal in Pengerang, Johor, which is expected to be operational in 2016," Muhamad Noor told reporters after the company's listing.
He said Gas Malaysia had recently signed a new agreement with Petronas for the supply of up to 492 million standard cu ft per day (mmscfd) of natural gas for 10 years from Jan 1, 2013 to Dec 31, 2022, with the option to extend for another five years.
"The new agreement has an additional 110 mmscfd on top of the existing 382 mmsfcd, which represents a 29% increase. Over the last few years, our expansion was constrained due to unavailability of natural gas. That constraint has been removed. For the next three years, that additional 110 mmscfd volume will be supplied in stages," he said.
Yesterday, Gas Malaysia opened at RM2.47, a 27 sen premium over its offer price of RM2.20. The counter closed up 22 sen at RM2.42 after hitting a low of RM2.39 and a high of RM2.52. It was the most active counter with 87.13 million shares done.
Commenting on the share price performance, Gas Malaysia chairman Datuk Hamzah Bakar said: "We are very happy that there is strong support from investors. This reflects the confidence that investors have in us in terms of our business model and what we are doing. We are quite happy about that."
Muhamad Noor said the company also plans to invest RM140 million in pipeline network facilities this year. Between 2013 and 2014, it plans to spend in the region of RM40 million per annum.
"The reason for the big investment this year is because we want to complete the pipeline facilities. Once the LNG is made available to us on Jan 1, 2013, we will be in the position to supply to our customers," he added.