PetGas sets aside RM1.2bil-RM1.3bil capex for FY21

by SHAHEERA AZNAM SHAH/ pic by PetGas

Petronas Gas Bhd (PetGas) is setting aside RM1.2 billion to RM1.3 billion for its capital expenditure for the group’s financial year 2021 (FY21), a slightly higher allocation compared to RM1.1 billion last year.

Its CFO Shariza Sharis Mohd Yusof said that the higher portion was determined by the slight increase in planned projects secured for 2021, which is also in line with the resumption of economic activities in the country.

“The capex for 2021 is expected to incur around RM1.2 to RM1.3 billion, which is a slight allocation higher compared to 2020 at RM1.1 billion.

“The higher level is in line with all the planned activities. Should new projects being announced, that figure may rise.

“Last year, some of the activities for our projects were affected by Covid-19 pandemic and the movement restrictions, thus we do anticipate a slight pick up in projects secured,” she said during the press conference for Pet Gas’ 38th annual general meeting conducted virtually today.

Among the projects that the group is conducting this year is the construction and installation of a 42-km long gas pipeline which will cost around RM541 million, linking its existing Peninsular Gas Utilisation (PGU) II to a power plant in Pulau Indah, Selangor.

“The pipeline is not to cater to the industrial area but it is for the delivery of gas to the Pulau Indah power plant to be constructed by Worldwide Holdings.

“The pipeline is designed for a bigger capacity and should there be any demand along the pipeline, we can easily have a spur line from those lines towards Klang and enable our shippers to sell more gas along the lines,” said Pet Gas MD and CEO Abdul Aziz Othman.