Petronas Gas Bhd, a subsidiary of Petroliam Nasional Bhd (Petronas), has approved the final investment decision for the development of a new gas compressor station in Johor, Malaysia. Total investment required for the gas project is estimated at RM460 million.
Work on the Kluang gas compressor station is scheduled to be completed in the first quarter of 2024. Once operational, the station is expected to increase the gas capacity of the Peninsular Gas Utilisation II gas pipeline network.
The project will be financed using Petronas Gas’ existing Islamic financing facility from RHB Islamic Bank Bhd (RHB Bank). Due to this, the project is not expected to have any significant impact on the company’s profits per share, net assets per share or gearing for the 2021 fiscal year.