Natural gas tariff for non-power sector to go up from July 1

July 15, 2018

Dateline 2018-06-13, The Sun:

Gas Malaysia Bhd has announced a higher average effective natural gas tariff for the non-power sector in Peninsular Malaysia at RM32.69/MMBtu from July 1 to Dec 31, 2018, 17 sen or 0.5% higher than the RM32.52/MMBtu from Jan 1 to June 30, 2018.

It said in a filing with the stock exchange that the average natural gas base tariff is set at RM31.92/MMBtu for the second half of the year. However, under the gas cost pass through (GCPT) mechanism, a surcharge of 77 sen/MMBtu will apply to all tariff categories due to the higher actual gas costs against the reference gas costs in the base tariff.

The natural gas tariff revision was approved by the government via a letter from the Energy Commission dated June 12.

For Category A (Residential), the effective tariff rate, however, fell 0.5% to RM23.80/MMBtu from RM23.92/MMBtu. For the other categories, the effective tariff rate will range from RM30.50/MMBtu to RM33.32/MMBtu.


Gas Malaysia raises natural gas prices

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.


Unit Gas Malaysia to raise tariff by 6%

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.


Get set for competitive prices thanks to Gas Supply Bill 2016

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.

Gas Malaysia to use new regulatory framework in 2016

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.

Groundbreaking Of Gas Malaysia’s 1st CNG Project

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.


Gas prices to remain until the end of the year

October 10, 2015

Dateline Sept 11, NST:

Gas prices shall remain until the next revision at the end of the year. Despite falling fuel prices in the world market, gas supplied in Malaysia is still below world market price of around RM40 per mmbtu (million British thermal units), said Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili.

Gas is still being subsidised by the government, the minister said at the sidelines of International Greentech & Eco Products Exhibition & Conference Malaysia (IGEM) 2015 held here today.

Gas Malaysia Bhd, Malaysia’s supplier of natural gas had, since July 2015, raised tariffs by an average of 10.3 per cent for the fuel supplied to commercial and industrial sectors.