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.


Petronas Gas readying to offer under-utilized capacities to new gas players

May 25, 2017

Dateline 2017-04-17, Nikkei Asian Review:

 Malaysia’s national oil company Petroliam Nasional is in talks with government agencies to finalize financial details of a plan that allows new suppliers to use its unit Petronas Gas’ underutilized capacities at pipelines and gas processing facilities in the country.

Petronas Gas could potentially sell as much as half of current regasification capacity and up to 25% of pipeline load to third parties, Chairman Mohd Anuar Taib said at a news conference. Talks with the Energy Commission, an agency regulating the power sector, could be concluded as soon as this year.

 “We do see (opportunity) as we have underutilized capacity, and with shippers (coming in), we could benefit from higher utilization,” Chief Executive Yusa Hassan said. “We are actually in full support.”

Malaysia decided last year to give new suppliers access to existing infrastructure such as regasification terminal, and tap into transmission and distribution pipelines in the country. That will allow other companies to sell gas to consumers, easing a decades-old restriction in an industry dominated by Petronas Gas and Gas Malaysia.

Aramco JV was well thought out, says Petronas

May 9, 2017

Dateline 2017-04-27, Malay Mail:

The joint venture with Aramco for the Refinery and Petrochemical Integrated Development (RAPID) was not done overnight but had been looked at since 2014, said Petronas group executive vice-president Md Arif Mahmood.

Arif said the Malaysian unit was “never forced into the joint venture” and had always been eyeing a partner like Aramco.


Petronas says RM200b ‘forgone revenue’ from selling natural gas cheaper in Malaysia

May 7, 2017

Dateline 2017-04-25, The Edge:

Petroliam Nasional Bhd (Petronas) has forgone more than RM200 billion in revenue from selling natural gas in Malaysia at rates lower than global prices since the country regulated prices of the fuel after the 1997/1998 Asian financial crisis.

The Edge Malaysia business and investment weekly (Edge Weekly) in its latest March 27 to April 2 issue, quoted Petronas president and group chief executive officer Datuk Wan Zulkiflee Wan Ariffin as saying despite Malaysia revising the price of natural gas upward every six months, the local rate was still below the international price.

“I think the forgone revenue since we started is more than RM200 billion because we have not been able to sell natural gas at market value. In the past, we made investments just to ensure security of supply. But moving forward, there is this perennial issue of non-market pricing.

Challenges to persist for O&G companies

May 4, 2017

Dateline 2017-03-21, NST:

The worst is not over yet for oil and gas (O&G) companies as shale oil producers ramp up production and oil prices make a slow recovery.

Analysts and industry observers expect uncertainty to loom for the rest of the year as industry assumption remained at US$50 (RM221.50) a barrel.

Petroliam Nasional Bhd (Petronas) was more conservative, expecting an average of price of US$45 a barrel.

“We are maintaining our this year’s average Brent crude price at US$50 a barrel as we see more uncertainty with crude oil prices towards the downside bias,” said an analyst at MIDF Research.

Oil prices fell more than one per cent yesterday as investors made record cuts to bet on rising prices after strong drilling data from the United States fed concerns about the effectiveness of production cuts led by Organisation of the Petroleum Exporting Countries (Opec) to curb a supply glut, Reuters reported.


Petronas not affected by weaker oil price

April 28, 2017

Dateline 2017-03-17, Malaysia Outlook:

The recent oil prices pull-back will not affect Petroliam Nasional Bhd’s (Petronas) spending given that the local oil major has pegged its capital expenditure (capex) budget at an average US$45 per barrel.

According to Kenanga Research, the Petronas capex was a conservative figure compared with the US government’s Energy Information Administration forecast of US$54 per barrel.

“However, capex and operating expenditure allocations will remain rather selective as Petronas will continue to prioritise on managing its cash flow amid tight capex spending,” Kenanga said in its report this week.

Oil prices have weakened by 9% to US$51.4 per barrel within a week after a few months of stabilisation, largely due to reignited concerns on building oil stocks and revival of rigs count in the United States coupled with the moderation of oil demand growth.

Malaysia’s Petronas warns on 2017 outlook despite swing to Q4 profit

April 27, 2017

Dateline 2017-03-14, Reuters:

Malaysia’s Petroliam Nasional Bhd warned on Tuesday of a cautious outlook for 2017, although sharp cutbacks in expenses by the state-run oil major allowed it to swing to a fourth-quarter profit from a loss in the year-ago period.

Petronas maintained what it called a “conservative” outlook for this year – despite also posting a higher profit for 2016 – saying it expects oil prices to remain uncertain and that it will continue to pursue lower costs.

Petronas, as the company is known, is relying on lower operating expenses, job cuts and project rollbacks to help it navigate through a low oil price environment.

Malaysia relies on its only Fortune 500 company for nearly a third of its oil and gas-related revenue. Petronas is one of the country’s largest employers with a workforce of over 50,000.