Third Party Access system no threat to Petronas Gas, says Kenanga Research

Dateline 2018-01-17, The Sun:

Kenanga Research is of the view that the Third Party Access (TPA) system, which took effect yesterday, will not be a drag on Petronas Gas Bhd’s (PetGas) earnings, given that the company is purely a transporter and processor and is not involved in gas supply.

In any case, the research house said, TPA will only affect PetGas’ parent company, Petroliam Nasional Bhd (Petronas) and Gas Malaysia Bhd.

On Monday, PetGas announced that the Energy Commission had confirmed the current tariff for the Peninsular Gas Utilisation System, Regasification Terminal Sungai Udang and Regasification Terminal Pengerang will be maintained until the end of this year.

At the same time, the company said it is in full compliance with the technical and operational provisions of the TPA system, which allows any party to have access to gas facilities available.

Kenanga Research said the news was not a surprise, given the management indication earlier that the new tariff structure is likely to be delayed as the authority needs more time to come out with a feasible framework to ensure the stability of the fee structure.

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