Natural gas tariffs to fall in Jan-June 2017

KUALA LUMPUR: The base tariffs for natural gas for the Peninsular Malaysia’s non-power sector will fall to an average of RM26.31 per million British thermal units (MMBtu) for the first six months of next year.

This is 2.74 per cent lower than the previous average tariff, said Gas Malaysia Bhd in a statement to Bursa Malaysia yesterday.

The lower average effective tariff is due to the rebate of 40 sen per MMBtu under the Gas-Cost-PassThrough mechanism for the January-June period next year.

Gas Malaysia said the government had approved for it to effect the revision of the natural gas tariff for January 1 next year to December 31 2019.

The base tariff (per MMBtu) for January-June next year is RM26.71, followed by RM28.05 for July-December next year, RM30.90 for January-June 2018, RM31.92 for July-December 2018, RM32.69 for January-June 2019, and RM32.74 for JulyDecember 2019.

The revised base tariff for January 1 to June 30 next year for the residential sector is from RM19.52 to RM19.26.

For the commercial sector, the annual consumption of 0-600 MMBtu translates into a base tariff of RM24.86 (currently RM25.20).

For 601-5,000 MMBtu, the base tariff will be RM24.99 (from RM25.20), for 5,001-50,000 MMBtu RM25.24 (from RM25.58), for 50,001200,000 RM26.33 (from RM26.69); for 200,001-750,000 MMBtu RM26.33 (from RM26.69) and for above 750,000 MMBtu RM27.21 (from RM27.58).

The average of RM26.71 is compared with the average existing tariff of RM27.05.

Gas Malaysia said the revisions are expected to contribute positively towards its financial position for the next three financial years.