Gas Malaysia in RM180m JV with Perak to build pipeline

To recap, the government had prescribed the incentive based regulation (IBR) framework which sets the base tariff for a regulatory period of three years from January 2017.

KUALA LUMPUR: Gas Malaysia Bhd has teamed up with the Perak Government to build a 140km  pipeline in the state costing RM180mil, focusing on the Kinta Valley customers.

Gas Malaysia said on Thursday it had entered into a pipeline development agreement with the state government to provide gas infrastructure for the supply of natural gas to its customers in Kinta Valley.

“The cost of the development of the pipeline and the project as a whole is estimated to be in the region of RM180mil. Perak State Government has agreed to contribute towards the development cost in the form of capital contribution of RM10mil which is fixed and not subject to any variation,” it said.

Under the JV, Gas Malaysia will develop, operate and own the 140km natural gas distribution system pipeline from the take-off point located at Ayer Tawar, Perak to supply natural gas to the areas identified by the parties . It will have a capacity of 50,000 standard cubic metres per hour.

“Gas Malaysia will fund the project through combination of internally generated funds and borrowings,” it said.

It said the state government wanted to promote clean energy in Perak whilst it was keen to to provide gas infrastructure development for the supply of natural gas to its customers in Kinta Valley.

This is in line with Gas Malaysia’s overall strategy of maintaining its key position to be an innovative value added energy solution provider.