SMOOTHER OPERATIONS
Firm plans higher spending of RM750m to maintain existing plants
PETRONAS Gas Bhd will spend RM1.3 billion this year to revamp existing facilities and extend gas pipelines as well as for the Refinery and Petrochemical Integrated Development project.
PETRONAS Gas Bhd (PetGas) is allocating RM1.3 billion in capital expenditure (capex) this year mainly to revamp its overall operational facilities.
The capex for this year is 7.14 per cent lower than the RM1.4 billion earmarked for last year.
“Usually, we spend between RM450 million and RM500 million annually to rejuvenate our operation facilities. But this year, we will spend RM750 million to maintain our existing plants,” said chairman Datuk Mohd Anuar Taib after the company’s shareholders meeting yesterday.
Anuar said PetGas would also allocate RM350 million for the Refinery and Petrochemical Integrated Development project, while the remaining RM200 million allocation is for projects to extend gas pipelines.
“We believe gas is the cleanest source of fossil fuel and it will remain our core business for many years. This will fit higher utilisation of gas, which in turn would contribute towards Malaysia’s commitment to many development projects,” he added.
Anuar said PetGas would not reduce its dependence on gas, but seek higher efficiencies at its Peninsular Gas Utilisation system and six gas processing plants in Terengganu.
He said most of PetGas’ earnings were derived from the gas segment, including processing, transportation and regasification, and only about 10 per cent supported by the utilities segment.
Meanwhile, managing director and chief executive officer Kamal Bahrin Ahmad said PetGas was in talks with the Energy Commission (EC) and relevant stakeholders to ensure a smoother Third Party Access (TPA) implementation.
“It depends on the EC to issue the licence to support the market. The TPA would not affect PetGas gas transmission and regasification terminals,” he said.
Kamal said PetGas received queries from potential entities but had yet made a final decision.
Net profit for the financial year ended December 31 2017 rose 2.87 per cent to RM1.79 billion, from RM1.74 billion, driven by higher fund investment income and profit share from one of group’s joint-venture companies.
Revenue rose 5.48 per cent to RM4.81 billion, from RM4.56 billion, mainly boosted by the LNG Regasification Terminal in Pengerang and higher contributions from the utilities segment.