KUALA LUMPUR: Petronas Gas Bhd (PetGas) plans to build a RM650 million compressor station with two gas compressor units in Jeram, Selangor.
The compressor station is aimed at enhancing the capacity of Peninsular Gas Utilities (PGU) III in the Northern region.
In a filing with Bursa Malaysia Securities Bhd today, PetGas revealed that it has authorised a final investment decision (FID) for the construction of a new compressor station, which will be completed in 2026.
"The construction of the new compressor is anticipated to meet future gas demand increase from 2026 onwards," said PetGas.
PetGas said that the project is a component of the PGU III expansion, which operates within the Incentive-Based Regulation (IBR) framework.
"The IBR will determine the cost recovery of the Project via Transmission Pipeline Tariff," it added.
Additionally, PetGas anticipates financing the project through internally generated funds and/or external borrowings."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," it continued.
Petronas Gas was trading at RM17.80 as at 3.02pm.