Petronas Gas allocates slightly higher capex for FY22

From left: Petronas Gas Bhd managing director and chief executive officer Abdul Aziz Othman, chairman Adnan Zainal Abidin and chief financial officer Shariza Sharis Mohd Yusof.

KUALA LUMPUR: Petronas Gas Bhd (PGB) is allocating a slightly higher capital expenditure (capex) of RM1.4 billion for the financial year ending Dec 31, 2022 (FY22) compared to RM1.2 billion in FY21.

Managing director/chief executive officer Abdul Aziz Othman said PGB is expecting more maintenance work in FY22 as the country transitions into the endemic phase.

"We also expect to see more progress in the growth projects that we announced last year," he told a virtual press conference after PGB's annual general meeting today.

Abdul Aziz said PGB will continue to seize opportunities to deliver gas solutions in a responsible and sustainable manner this year while progressing and realising its identified growth projects.

"These include pursuing integrated solutions for power and utilities at new industrial zones in Malaysia, growing power generation and regasification capacities both in Malaysia and regionally, as well as seizing opportunities brought about by the energy transition,” he added.

On PGB’s exports of liquefied natural gas (LNG), Abdul Aziz said he believes that there would be a need for more storage capacity, given the rising demand for LNG.

He noted that PGB currently owns two ISO tanks in Pengerang.

"If everything goes well, by year-end we should be able to say whether we need to proceed with a third tank,” he added.

On another note, PGB chairman Adnan Zainal Abidin said the one-off Prosperity Tax would not significantly impact the company’s ability to provide dividend payments. - Bernama