Gas Malaysia announces natural gas tariff revision

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KUALA LUMPUR (Nov 29): Gas Malaysia Bhd said the average effective natural gas tariff for the non-power sector in Peninsular Malaysia is at RM32.52/MMBtu from Jan 1 to June 30, 2018, after taking into account costlier liquified natural gas (LNG).

In a statement with Bursa Malaysia, Gas Malaysia said under the gas cost pass through mechanism, a surcharge of RM1.62/MMBtu will apply to all tariff categories, due to the increased LNG prices against the reference price in the base tariff during the six-month period. 

The average natural gas base tariff is set at RM30.90/MMBtu during the period, the company said. 

"Gas Malaysia wishes to inform that the Government has approved, via a letter from Suruhanjaya Tenaga dated 28 November 2017, for Gas Malaysia to effect the revision of the natural gas tariff for the non-power sector in Peninsular Malaysia from 1 January 2018 to 30 June 2018.

"While the tariff revision has no material impact on Gas Malaysia’s business operations, it is expected to contribute positively towards the financial position of the company for the financial year ending 31 December 2018," the statement said.

In July 2017, Gas Malaysia said the average effective natural gas tariff for the non-power sector in Peninsular Malaysia stood at RM26.46/MMBtu, beginning July 1 to Dec 31, 2017.