Expected new contract wins to bolster PetGas


Maybank IB said management is actively looking for new projects.

PETALING JAYA: The final scheduled step-down in transportation tariffs poses a challenge for Petronas Gas Bhd (PetGas) heading into 2026, says Maybank Investment Bank Research (Maybank IB).

However, the research house noted that this is potentially offset by expectations of new project wins.

Maybank IB said management is actively looking for new projects related to regasification, carbon capture, utilisation and storage, and power generation/battery energy storage systems.

“Parent Petroliam Nasional Bhd (PETRONAS) has confirmed plans to develop a third regasification plant in Lumut, possibly commissioning in financial year 2029 (FY29), which will likely be undertaken by PetGas in our view,” Maybank IB said in a report yesterday.

“The upcoming RP3 (Regulatory Period 3), which begins in 2026, represents the final step-down,” it added, forecasting a 4% reduction in transportation earnings before interest and taxes in FY26.

The research house kept its “hold” call on the stock with a target price of RM18.40.

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