PetGas looks beyond Malaysia’s gas needs

September 13, 2021

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.

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

March 6, 2018

Dateline 2018-01-16, 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.

The share price of PetGas has suffered since early last year, going from above RM21 to a 52-week low of RM15.82 before recovering to the current level of RM19. Kenanga Research said this was because the market was anticipating a severe cut in tariff, which will dampen PetGas’ earnings.

Petronas Gas to gain from market liberalisation

May 28, 2017

Dateline 2017-04-17, Sun Daily:

Petronas Gas Bhd (PetGas) is unfazed by competition arising from the liberalisation of the gas market, with an expectation that the implementation of the Gas Supply (Amendment) Act 2016 will benefit the company as its regasification and transmission facilities are open for third party access.

Speaking to reporters after the group’s AGM yesterday, managing director and CEO Yusa’ Hassan expressed his support towards the move to liberalise the gas market.

“Our infrastructure, both regasification and transmission, will open for third party access and that will be supporting the gas ventures downstream with more competitive and liberal supply of gas from different suppliers, which will promote the development of gas and gas-related industries,” he said.

He said it is still in discussions with the Energy Commission (ST) to iron out the details of the liberalisation, adding that PetGas has a one-year grace period to prepare for the various agreements and access codes.