KUALA LUMPUR: Petronas Gas Bhd will be constructing and installing a 42-km long gas pipeline costing RM541mil which link from its existing Peninsular Gas Utilisation (PGU) II to a power plant in Pulau Indah, Selangor.
It said on Monday the 36-inch diameter pipeline will transport natural gas to, amongst others, a prospective 1,200 megawatt gas fired, combined-cycle gas turbine power plant in Pulau Indah, and the related industrial areas along its route.
Petronas Gas said the plant will require about 137 million standard cubic feet supply of natural gas. This project is estimated to be completed and commissioned in the first quarter of 2023.
It added the project is undertaken by its gas transportation & regasification business as part of the lateral expansion of the PGU which is regulated under the incentive-based regulation (IBR) framework. The IBR will determine the cost recovery of the project via transmission pipeline tariff.
Petronas Gas will utilise its Islamic financing facility from RHB Islamic Bank Bhd to fund the project.
It had on Monday, executed a facility agreement with the bank for a maximum aggregate principal amount of up to RM1.3bil.
The three-year financing facility shall have a tenure of three years and shall be available to the company for 30 months from the first utilisation.
Did you find this article insightful?
90% readers found this article insightful