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Petronas Gas to build RM541 mln pipeline for power plant in Pulau Indah

KUALA LUMPUR, Feb 22 -- Petronas Gas Bhd (PGB) has approved a final investment decision for the construction of a new lateral gas pipeline costing RM541.07 million.

In a filing with Bursa Malaysia today, the gas infrastructure and utility company said the pipeline is approximately 42 kilometres and will utilise gas tapped from the existing Peninsular Gas Utilisation (PGU) II pipeline network.

It said the natural gas will be transported to a prospective 1,200 megawatt gas-fired, combined-cycle gas turbine power plant in Pulau Indah, Selangor, which requires a supply of approximately 137 million standard cubic feet, and to the related industrial areas along the route.

“This project is estimated to be completed and commissioned in the first quarter of 2023,” said PGB.

It added that the project was undertaken by its gas transportation and regasification business as part of the lateral expansion of the PGU, which is regulated under an incentive-based regulation (IBR) framework.

“The IBR will determine the cost recovery of the project via a transmission pipeline tariff,” said PGB, adding that it would be using its Islamic financing facility from RHB Islamic Bank Bhd to fund the project cost.

-- BERNAMA

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