Gas Malaysia sets aside RM500m
KUALA LUMPUR: Gas Malaysia Bhd is allocating RM500 million in capital expenditure (capex) this year to extend its natural gas distribution system network in the next three years.
Chief executive officer Ahmad Hashimi Abdul Manap said this was in line with the company’s goal of achieving higher sales volume growth.
An additional RM1 million in capex would be allocated after five years as he is optimistic that the natural gas industry outlook will continue to remain bright.
“We believe the picture of the natural gas industry was good. Even though we have had a very challenging year, but for this year we still registered a volume growth of 3.3 per cent, so given a better situation I believe the volume would grow bigger,” he said, here, yesterday.
This year, Ahmad Hashimi expects a volume growth of 3.4 to 4.0 per cent, higher than last year’s 3.26 per cent.
“More and more customers and industry players are using gas. Gas is not just cheap but a good alternative fuel which is environmentallyfriendly, safe and clean,” he said.
Ahmad Hashimi said the company plans to continue its publicprivate partnership concept, similar to the RM180 million Kinta Valley natural gas distribution pipeline project in Perak, Negeri Sembilan, Kedah and Perlis.
To date, he said the company has extended its gas distribution network to 2,186km, servicing more areas while maintaining its 99 per cent reliability.
Ahmad Hashimi said the company’s new venture in the areas of combined heat and power, virtual pipeline and bio compressed natural gas will also start contributing positively to the company’s revenue. Amir Hisyam Rasid
Ahmad Hashimi Abdul Manap