Dateline 2021-08-16, Malaysiain Reserve:
PETRONAS Gas Bhd (PetGas) had a good run in the 2010s. The gas infrastructure and utility player increased its pipeline and regasification capacity as Malaysia’s natural gas consumption rose by more than 80%. It also grew its necessary experience in the utility sector, including electricity, steam and gas products generation.
However, this decade may very well present a different landscape. For one, Malaysia’s gas industry market is expecting full liberalisation in the distribution segment in 2022 (see sidebar), with another regulatory review in 2023-2025. While PetGas’ monopoly in the gas infrastructure space remains unchanged, policy changes may set the tone for future returns from its regulated businesses of gas transport (pipeline) and regasification.