Arrival of additional LNG to act as catalyst for Gas Malaysia
KUCHING: Investors are encouraged to add Gas Malaysia Bhd ( Gas Malaysia) to their portfolios backed by shipping data that shows an liquefied natural gas ( LNG) tanker moored at Petronas gas’ Melacca Sungai Udang regas terminal.
According to analysts, its arrival should help address Malaysia’s natural gas shortage and provide catalysts for Gas Malaysia as it was contracted to receive 44 million standard cubic feet per day (mmscfd) additional gas from Petronas Gas Bhd ( Petronas Gas) in financial year 2013 (FY13).
According to a research report by CIMB Equities Research (CIMB Research) the arrival of LNG would alleviate fears of further delays in the availability and also provide futher catalysts due to additional customer take-up.
Bloomberg’s mapping data showed MISC Bhd’s LNG carrier with a capacity of 152,888 cubic metres was moored in Sungai Udang, Melacca from April 30 and was at Shell’s Bonny Terminal in Nigeria prior to Melacca.
CIMB Research stated that it was surprised that LNG was being imported from Nigeria as Petronas Gas had announced that LNG would be delivered from Bintulu, Sarawak. It opined that this could mean that the Bintulu to Melacca cargoes had been redirected to fulfill orders from Bonny while the Bonny cargoes had been sent to Sungai Udang instead.
It pointed out that such arrangements were not unusual as tanker owners could redirect cargoes to optimise their shipping costs. The research firm viewed the outcome as positive as it underscored Petronas Gas’ promise that its regas plant would be operational by the second quarter of 2013. It also meant that Gas Malaysia would likely receive an additional 44mmscfd of natural gas that had been contracted for FY13.
The evidence of the arrival of LNG would ease uncertainties and be beneficial to Gas Malaysia, it added.