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BUSINESS • 21/03/2025 02:46 PM

Lower Transportation, Regasification Tariffs Increase Competitiveness Of Gas Players -- MIDF Amanah

KUALA LUMPUR, March 21 (Bernama) -- MIDF Amanah Investment Bank Bhd said the reduced tariffs for transportation and regasification could increase the competitiveness of gas players, boosting export revenues and stimulating economic activity throughout the year.

The investment bank said the new tariffs were expected to lead to higher sales margins and/or a lower cost for consumers.

“Additionally, the reduced tariffs could free up resources and open opportunities for investments in decarbonisation and renewable projects, aligned with Malaysia’s sustainability goals,” it added.

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On Thursday, Petronas Gas Bhd (PGB) announced that the government, through the Energy Commission, has approved its tariff adjustment proposals applicable for 2025 under the Regulatory Period (RP2).

The adjusted tariffs for the company’s gas transportation and regasification facilities, effective Jan 1-Dec 31, 2025, apply to the Peninsular Gas Utilisation, Regasification Terminal Sungai Udang, Melaka and Regasification Terminal Pengerang, Johor.

The new tariff also applies to PGB’s Compression Tariff for the supply of high-pressure gas to Singapore. 

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MIDF Amanah said the risk of these lowered tariffs remains to be the impact on PGB’s revenue for the financial year ending Dec 31, 2025, consequently affecting costs in infrastructure and maintenance.

“This could further include potential adjustments to other expenses, subsequently affecting long-term contracts between PGB and its long-standing clients.

“Nevertheless, given the expertise and experience of PGB in the field, as well as Petroliam Nasional Bhd’s (Petronas) cost control plans, we believe such financial risks could be mitigated,” it added.

At lunch break, PGB’s share price gained eight sen to RM17.02 with 152,100 shares traded.

-- BERNAMA

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