Petronas Gas expects gas demand from non-power sector to improve in 2022

KUALA LUMPUR: Local gas demand from the non-power sector is expected to increase post-COVID-19 when local industries return to peak operation, said Petronas Gas Bhd (PGB).

Chairman Adnan Zainol Abidin said the increase in demand would be supported by the availability of upstream pipeline gas supply as well as liquefied natural gas imports.

"PGB foresees that gas demand will gradually increase with the phasing down of coal plants for electricity generation that will be replaced by new gas plants.

"This is aligned with recent moves by banks and financiers to embrace greener investment portfolios," he said in its Integrated Report 2021 released today.

Adnan said despite a highly challenging business environment impacted by the COVID-19 pandemic as well as economic and industry volatility, the company and its partners stepped up and delivered a resilient performance in 2021 while ensuring the security of Malaysia’s gas supply.

The group, he said, successfully navigated the challenges of 2021 by generating revenue of RM5.65 billion, some one per cent higher than the RM5.59 billion in revenue reported in 2020, mainly as a result of better contributions from the utilities and regasification segments.

Adnan said moving forward, sustainable development must be incorporated in all aspects of the business value chain for a company to be successful and create long-term value for its stakeholders.

"By leveraging our four strategic thrusts, namely Operational Excellence, Commercial Excellence, Growth, and People, Systems and Culture, we are laying strong foundations for a robust and fundamentally resilient business that can respond quickly to changes in the business environment," he said.

He added that PGB was optimistic of delivering a resilient performance in 2022 as it pursued its growth projects. - Bernama