PetGas opens 2 segments to suppliers
KUALA LUMPUR: Petronas Gas Bhd (PetGas) has opened its gas transportation and regassification businesses to gas suppliers on liberalisation of the gas market.
Petronas executive vice-president and chief executive officer of upstream Datuk Anuar Taib said the market liberalisation, implemented in January last year, was now open to players.
“The incentive-based regulation, which aims to provide a levelplaying field while attracting new players into domestic gas market, however, would not impact gas processing and utilities segments.
“PetGas welcomes more players to use its facilities as the company is well-positioned to provide energy bridge for gas suppliers to deliver volume to customers,” he said after PetGas’ annual general meeting, here, yesterday.
PetGas yesterday announced its highest ever dividend of 72 sen a share, representing a payout ratio of 79 per cent.
PetGas managing director and chief executive officer Kamal Bahrin Ahmad said the higher dividend was on the back of a strong performance derived from high operating efficiencies.
He said this was boosted by additional revenue from full-year operations of its liquefied natural gas regassification terminal in Pengerang, Johor, that was commissioned in November 2017.
PetGas recorded an all-time high revenue of RM5.5 billion, while its net profit stood at RM1.9 billion, a five per cent increase from RM1.8 billion in 2017.
Kamal Bahrin said the company was allocating RM1.2 billion capital expenditure (capex) for maintenance, statutory requirement inspections and digitalisation efforts this year.
He said the high capex was due to its plants undergoing statutory inspections, which usually would take place once every three to five years.
“It normally takes RM300 million to RM400 million to sustain reliability and productivity of the plants,” he said.
Five plant turnarounds are scheduled for this year.