KUALA LUMPUR: PETRONAS GAS BHD (PetGas) hopes to gain from leasing agreements once the contracts under the new Gas Supply (amendment) Act 2016 come into effect.
The Act, which was gazetted in September last year, provides for third party access to Petronas’ regasification and transmission infrastructure in an effort to liberalise the country’s gas supply segment.
Speaking to reporters after the company’s AGM here, PetGas chairman Datuk Mohd Anuar Taib said the company’s infrastructure was in place for third party access, but details on the implementation, including the new tariff rates were still being ironed out with the Energy Commission.
He added that there was a one-year grace period for preparation and discussions before the Act was enforced.
The company, he said, was in support of the move to liberalise the segment and was in compliance with most of the requirements of the new Act.
PetGas managing director and CEO Yusa’ Hassan said the company hoped the new Act would benefit the company.
“In terms of impact, we are hoping that it will benefit us. We do see opportunity for PetGas from the liberalisation, because we still have unutilised capacity.
“With third parties coming in, we are ready to provide the infrastructure, and hopefully we can benefit from the higher utilisation,” he said.
In its annual report, the company stated that the enforcement of the Gas Supply (amendment) Act was among the major risks for the year ahead.
“We need to ensure compliance with the Act, as well as be able to face increased competition and regulated tariffs.
“At the same time we are looking into ways to ensure the continued stability of our revenue while embarking on various cost-reduction initiatives to streamline our operations,” it said.
On the company’s capital expenditure for the year, Mohd Anuar said it would be slightly over RM500mil, and the bulk of this would be spent on the ongoing projects in Pengerang.
On another matter, Yusa’ said the company’s three projects supporting the development of the Pengerang Integrated Complex in Johor were on track.
The projects are the LNG Regasification Terminal in Pengerang (RGTP), the Pengerang Gas Pipeline Project and the Air Separation Unit (ASU).
Upon commissioning, he said the projects would bring in additional revenue to the company.
The second RGTP is at 86% completion and on track to commission its first storage tank by the end of the year, while the ASU project is scheduled for commissioning by end-2018.