“We are taking the necessary actions to ensure capacity building for each of the new business...”

Growing demand spurs Gas Malaysia to strengthen distribution infrastructure

GAS Malaysia Bhd will spend RM180 million to RM190 million this year to expand its gas distribution infrastructure. Chief executive officer Ahmad Hashimi Abdul Manap said this was based on the growing demand for gas last year.

The volume of gas sold last year grew 11.9 per cent to 183.9 million British thermal unit (MMBtu) compared with 164.26 million MMBtu in the previous year.

“The capital expenditure (capex) this year is part of the RM500 million capex planned over three years, beginning last year, to build more infrastructure,” he said after Gas Malaysia’s annual general meeting, here, yesterday.

Hashimi said the company spent RM170 million in capex last year.

In the last few years, the company has been aggressively building its gas infrastructure. It is extending its natural gas distribution network by another 57km this year, bringing the total gas pipeline to 2,243km.

On third-party access (TPA), Hashimi said the company would continue to demonstrate resilience amid an increasingly competitive environment.

“Last year, we initiated functional separation of Gas Malaysia’s businesses by incorporating two companies for licence application purposes.

“The ensuing years will reflect on our ability to adjust to the structural changes brought about by the TPA.

“We are taking the necessary actions to ensure capacity building for each of the new business, adapting our skills and experience to function as efficiently and competitively under the TPA.”

Hashimi also said it was business as usual for Gas Malaysia after the 14th General Election on Wednesday.

“Our customers are mainly industrial customers.”