August 22, 2017
Dateline 2017-07-14, The Star:
Gas Malaysia Bhd has revised up the natural gas tariff for Peninsular Malaysia’s non-power sector to an average base tariff of RM28.05 per MMBtu (one million British thermal units).
However, a government subsidy will lead to lower effective tariff rates for all tariff categories for the period from July 1 to Dec 31, 2017, compared with the existing rates.
In a filing with Bursa Malaysia, the gas distributor said the Government, through the Energy Commission, had approved on Friday for Gas Malaysia to effect the revision for the six-month period.
The Government has prescribed the incentive based regulation (IBR) framework, which sets the base tariffs for a period of three years from January 2017 and allows changes in the gas costs to be passed through via the Gas Cost Pass Through (GCPT) mechanism every six months.
August 13, 2016
Dateline 2016-07-04, Asia Review:
Gas Malaysia, partly owned by infrastructure company MMC Corp., is raising natural gas tariff in a move that analysts say will spare utilities from higher costs but may weigh on earnings of manufacturers which uses gas as an input.
The average gas tariff for heavy consumers and commercial users will rise by 6.0% to 27.05 ringgit per one million British thermal unit from July 15, Gas Malaysia said in a stock exchange filing. Selling prices for most residential customers meanwhile remained unchanged.
The increase in the piped-gas tariff will be “positive” in generating cash for national oil and gas producer Petroliam Nasional, or Petronas, while the impact on state-run power producer Tenaga Nasional
is “likely to be neutral,” said Fitch Ratings.
June 12, 2016
Dateline 2016-05-23, NST:
Consumers in Malaysia are set to enjoy competitive pricing and efficient services in gas supply, thanks to the Gas Supply (Amendment) Bill 2016 passed by the Dewan Rakyat today.
The amendment is set to enhance competition with the participation of third parties in the gas supply industry by implementing Third Party Access (TPA).
Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar, in winding up debate on the bill, said the gas supply industry is currently monopolised by existing industry players such as Petronas Gas Bhd and Gas Malaysia Bhd.
“Currently, the only party which supplies gas through pipeline transmission is Petronas, the nation’s natural gas producer which sells gas to other parties such as Gas Malaysia Bhd.
December 5, 2015
Dateline 2015-10-26, The Sun:
The implementation of the incentive-based regulation framework (IBR) by Gas Malaysia Bhd will take effect on Jan 1, 2016.
The IBR is a form of economic regulation aimed at incentivising Gas Malaysia for better operational and financial performance, whilst regulating the natural gas tariff.
In support of the liberalisation of the natural gas industry, which is to gradually align current piped gas towards market prices, the IBR is introduced to promote efficient resources allocation and usage, and sustainable financial performance, Gas Malaysia said.
With respect to its implementation, the IBR will first be on a trial run in 2016, following which the first regulatory period will run for the next three years from 2017 until 2019.
November 14, 2015
Dateline 2015-10-12, Malaysian Reserve:
Gas Malaysia-IEV Sdn Bhd (GMIEV), a subsidiary of Gas Malaysia Bhd, recently held a groundbreaking ceremony to mark the start of the construction of its compressed natural gas (CNG) station in Gebeng in Kuantan, Pahang.
The project will allow GMIEV to offer a complete value chain of mobile gas solutions; from processing of gas into CNG to transportation and distribution to end-users.
GMIEV will purchase natural gas from Gas Malaysia and will maintain and operate the compression, transportation and pressure regulating unit which are key components of the virtual pipeline.
When completed, the CNG station will be able to deliver compressed gas to customers within a 200km radius of Gebeng.
August 15, 2015
Dateline 2015-06-23, Barron’s:
“Keep it simple, stupid” has been the catch-cry of investment legends like Warren Buffett and Peter Lynch.
These heavyweights of investment lore have opined on the attractiveness of businesses that offer simple, easy to understand business models that provide a clear picture of how revenues and profits are generated. One of Buffett’s rules is that if you can’t understand what a company does after five minutes, then move on.
It appears Gas Malaysia (GASMSIA.MY) has taken that sage advice on board. The distributor of natural gas in peninsula Malaysia has made the job for analysts very simple,with a new regulatory regime for the pricing of natural gas providing share price prognosticators much clearer visibility on the stock’s earnings.
Coming to grips with regulatory regimes for utility stocks can be deathly boring. And Gas Malaysia is no different. However, understanding the company’s plans to adopt a so-called incentive-based regime (IBR) helps explain why there has been a round of earnings upgrades and ratings changes for a stock that has fallen 21% this year compared to a 2% decline in the Kuala Lumpur Composite Index.