PETALING JAYA: Petronas Gas Bhd
(PetGas) expects demand for gas-powered energy to rise on a combination of coal plants being retired as well as filling the needs of data centres, with the company on the lookout for more projects supporting these needs.
CGS International Research (CGSI Research), which has a “hold” rating on the stock with a target price of RM17.50, said in a report that the company sees growth opportunities from the retirement of coal plants with 7GW of capacity by 2033 that would result in a 30% increase in gas demand to fill the gap as well as driving a need gas pipeline infrastructure and regasification terminals.
PetGas management also mentioned in a briefing for analysts that the increased number of data centres in Malaysia would drive another 40% increase in gas demand to generate electricity from gas-fired plants.
The company’s management also expects the introduction of a carbon tax by 2026 to spur interest in exploring carbon capture, utilsation and storage.
