This article first appeared in The Edge Financial Daily on April 29, 2019

KUALA LUMPUR: Petronas Gas Bhd (PetGas), a unit of Petroliam Nasional Bhd or Petronas, has secured a 22-year steam supply contract from Polyplastics Asia Pacific Sdn Bhd, together with an agreement to continue to provide electricity supply to the company, also for 22 years.

The contracts were secured via two separate sales and purchase agreements PetGas recently inked with Polyplastics Asia Pacific, which is involved in engineering plastics and is a wholly-owned subsidiary of Polyplastics Ltd Company, Japan, in a statement PetGas said yesterday.

The first agreement was for the supply of steam to Polyplastics Asia Pacific, which is a new business secured from the Japanese-owned company, while the second one was for the extension of the existing electricity supply by PetGas, the statement read.

Both the electricity and steam will be generated by PetGas’s 350mw co-generation facility in Gebeng, which has been the main driver since 1999 in providing total utilities solutions and offering competitive power and steam tariff to its customers. Other than Gebeng, PetGas also operates similar facilities in Kerteh, to serve the Kerteh Integrated Petrochemical Complex.

“The contract extension is a testimony to our customers’ confidence in us to provide a reliable supply of power at a competitive tariff from PetGas’s cogen plant in Gebeng,” said PetGas managing director/chief executive officer Kamal Bahrin Ahmad.

In addition to the utilities business, PetGas operates two regasification terminals which are strategically located in the Straits of Johor and in Melaka, namely the Regasification Terminal Pengerang and the Regasification Terminal Sungai Udang, respectively. They provide a combined capacity of 660,000 Nm3 (normal cubic metre), which is among the largest in the region.