PETRONAS Gas approves FID for compressor station project

KUALA LUMPUR: Petronas Gas Bhd (PGB) has approved a final investment decision (FID) for the construction of a new compressor station project in Jeram, Selangor, with a total investment cost not exceeding RM650 million.

PGB said the project entails the construction of a new compressor station comprising two units of gas compressors to improve the Peninsular Gas Utilities (PGU) III capacity in the Northern region.

"The construction of the new compressor is anticipated to meet future gas demand increase from 2026 onwards and is targeted to be completed in 2026,” it said in a filing with Bursa Malaysia today.

PGB said it expects to fund the project with internally generated funds and external borrowings, adding that the final proportions of the source of funding will be determined after considering, among others, the internal cash requirements, gearing levels, interest cost and market conditions. - Bernama