Petronas Gas has announced that the approved a Final Investment Decision for the development of a new compressor station which is part of its gas transportation & regasification business at RM650 million
The group said it will construct a new compressor station comprising of two unit gas compressors in Jeram, Selangor to improve Peninsular Gas Utilities III capacity in the Northern region. The construction of the new compressor it said is anticipated to meet future gas demand increase from 2026 onwards and is targeted to be completed in 2026.
Petronas said the Total Investment Cost for the Project will not exceed RM650 million and the cost recovery mechanism for the project is part of the PGU III expansion which is regulated under Incentive-Based Regulation framework. The IBR will determine the cost recovery of the Project via Transmission Pipeline Tariff.
The group expects to fund the Project with internally generated funds and/or external borrowings and that the final proportions on the source of funding will be determined at a later date after taking into consideration, among others, the internal cash requirements, gearing levels, interest cost and market conditions.
The Project it added will not have any effect on the share capital and substantial shareholders’ shareholdings of PGB. There will be no material effect on the earnings per share, net assets per share of the Group and gearing for the financial year ending 31 December 2024.
