Natural gas tariff to go up by 5.3% in 2H, says Gas Malaysia

-A +A

KUALA LUMPUR (July 12): Gas Malaysia Bhd will raise average natural gas base tariff for the non-power sector in Peninsular Malaysia to RM32.74 per million British thermal units (MMBtu) for the period of July 15 to Dec 31, 2019, from RM32.69 per MMBtu currently.

A surcharge of RM1.92/MMBtu will apply to all tariff categories under the gas cost pass-through (GCPT) mechanism, Gas Malaysia said in an exchange filing today.

This translates to an average effective tariff of RM34.66/MMBtu, which is an increase of 5.3% from the current average tariff after surcharge, it said.

The tariff revision is not applicable to sales of natural gas for natural gas vehicle and liquefied petroleum gas supplied in gas cylinder or in bulk supply.

“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 2019,” said Gas Malaysia.

At market close, shares in Gas Malaysia were unchanged at RM2.91, bringing it a market capitalisation of RM3.74 billion.