Gas Malaysia to raise natural gas prices

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KUALA LUMPUR (June 29): Gas Malaysia Bhd will raise the average price of natural gas for the non-power sector in Peninsular Malaysia from RM25.53/MMBtu to RM27.05/MMBtu.

The revision is in line with the national rationalisation plan and gas cost pass through mechanism, which allow prices to be revised every six months.

In a statement to Bursa Malaysia today, Gas Malaysia said the new prices or tariffs would be effective this July 15. One MMBtu is equivalent to one million BTU or British Thermal Unit.

Gas Malaysia said it had received the Government's instruction to raise natural gas prices. "There will be no change to the selling prices for residential customers, which is under category A," Gas Malaysia added.

"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 Dec 31, 2016," the company said.

At 12:30pm, Gas Malaysia shares rose three sen or 1.3% to settle at RM2.26 for a market value of RM2.9 billion, albeit on thin trades of 5,500 shares.