PetGas inks deals with PetChem units to expand nitrogen supply

This article first appeared in The Edge Financial Daily, on June 4, 2019.
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KUALA LUMPUR: Petronas Gas Bhd (PetGas) wants to expand its industrial gas production to provide additional nitrogen supply to sister company Petronas Chemicals Group Bhd’s (PetChem) subsidiaries.

For that, it said it has inked five heads of agreement (HoAs) with PetChem’s units yesterday, under which it will build and install a new nitrogen facility, upgrade its existing one, enhance current back-up facility, and operate and maintain nitrogen supply.

“The project will provide additional nitrogen to serve new demand within Kertih and guaranteed back-up supply for the customers,” it said in a stock exchange filing yesterday, adding it will fund the project using internal funds.

The project is expected to commence commercial operation by February 2021.

“The HoAs signify understanding and commitment between PetGas and the respective customers of the project for PetGas’ further action in ensuring the successful delivery of the project,” PetGas said.