(Updated)

Petronas Gas' RM541m Pulau Indah gas pipeline project progressing as scheduled

Petronas Gas' RM541m Pulau Indah gas pipeline project progressing as scheduled
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KUALA LUMPUR (April 20): Petronas Gas Bhd said today the development of its RM541.07 million 42km gas pipeline project, which will supply gas to the proposed Pulau Indah power plant in Selangor, is progressing as scheduled based on work done so far involving the engineering portion and land acquisition for the pipeline.

Petronas Gas managing director and chief executive officer (CEO) Abdul Aziz Othman said Petronas Gas on March 31 awarded the pipeline’s engineering, procurement, construction and commissioning (EPCC) contract to the contractor.

“At this moment, the engineering [portion] is progressing, among other activities today, including land acquisition,” Abdul Aziz said during Petronas Gas’ virtual press conference today in conjunction with the group’s annual general meeting (AGM).

“The pipeline is designed for a bigger capacity [than required by the power plant], and should there be any demand along the pipeline, we can easily add spur lines towards Klang to allow our shippers to sell more gas along the line,” he said.

The gas pipeline is slated to come on-stream by early 2023, according to Abdul Aziz.

He said today the gas pipeline is primarily meant to cater to the proposed 1,200MW Pulau Indah power plant, which is expected to require approximately 137 million standard cubic feet of gas per day. 

Pulau Indah Power Plant Sdn Bhd is the company undertaking the electricity-generation project.

According to the company's website, the estimated RM3.35 billion project is a natural gas-powered combined cycle gas turbine electricity-generation facility.

The company indicated that the power plant will go through five phases of construction, namely design, EPCC and testing before commencing its commercial operation on Jan 1, 2024.

"Once completed, it will be connected to the National Grid to support the increasing power demand in the Klang Valley, which accounts for 43% of total electricity demand in Peninsular Malaysia.

"Pulau Indah, Klang is approximately about 60km southwest of Kuala Lumpur and was chosen due to its close proximity to the Central Region, which is the largest load centre.” the company said.

Worldwide Holdings Bhd owns a 75% stake in Pulau Indah Power Plant while Korea Electric Power Corp holds the remaining 25%, according to a RAM Ratings note published on Pulau Indah Power Plant’s website.

On Bursa Malaysia today, Petronas Gas’ share price rose two sen or 0.13% at 2.40pm to RM15.82 for a market value of about RM31.32 billion.

Petronas Gas has 1.98 billion issued shares, according to the company’s latest quarterly financial report.

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Chong Jin Hun