Gas Malaysia receives govt directive on average natural gas selling price

KUALA LUMPUR: Gas Malaysia Bhd has received the government's directive on the average natural gas selling price for the distribution segment by Gas Malaysia’s wholly-owned subsidiary, Gas Malaysia Energy and Services Sdn Bhd.

The directive is for a period of one year beginning Jan 1 to Dec 31, 2021, with the average natural gas selling price to be determined every quarter.

“The applicable average natural gas selling price and the natural gas selling price by tariff category for the one-year period will only be announced at the beginning of each quarter,” it said in a filing with Bursa Malaysia.

The natural gas selling price shall include the transportation tariff of RM1.19 per million British Thermal Units (MMBtu), the legacy gas cost pass through of 62 sen per MMBtu and distribution tariff of RM1.88 per MMBtu as previously approved by the Energy Commission.

“Gas Malaysia wishes to clarify that this selling price determination is not applicable to sales of natural gas for natural gas vehicle and liquefied petroleum gas supplied in gas cylinder or in bulk,” it added.

The selling price determination will continue to contribute positively towards the financial position of the company for the financial year ending Dec 31, 2021.

-- BERNAMA