Petronas Gas Bhd shares fell 20 sen or 1.13% to RM17.50 as at 3.17pm, amid the group’s involvement in a feasibility study for a proposed pipeline linking the Yan LNG regasification terminal to Peninsular Malaysia’s gas network.
The counter opened at RM17.52 and traded between RM17.40 and RM17.58, with 190,800 shares changing hands.
The latest movement comes after Gas Malaysia Bhd and Petronas Gas entered into a joint study and collaboration agreement to assess the proposed onshore lateral pipeline connecting the Yan, Kedah terminal to Petronas Gas’ Peninsular Gas Utilisation (PGU) system.
The study will examine the technical, operational and commercial viability of the proposed connection, including engineering design, land acquisition requirements and other technical assessments.
Petronas Gas operates and maintains the PGU network, which transports processed natural gas to power generators, petrochemical facilities and industrial customers across Peninsular Malaysia.
The agreement follows Gas Malaysia’s receipt of a Letter to Proceed from the Energy Commission in March for the proposed Yan LNG regasification terminal.
However, the agreement does not represent a final decision to construct the pipeline, with the feasibility study intended to determine whether the proposed connection is viable.
The arrangement is a related-party transaction under Bursa Malaysia rules as Petronas Gas holds a 14.8% direct stake in Gas Malaysia.
