Petronas Gas to raise RM1.2b for funding

Gas distributor, Petronas Gas Bhd (PGB), plans to raise RM1.2 billion
either through a term loan or sukuk bond to partly finance the
300-megawatt gas-fired Kimanis Power Plant in Sabah.


The project financing will be 80 per cent of the total cost of the
RM1.5 billion power plant, while the remaining 20 per cent will be
funded via equity.


Its chairman Datuk Anuar Ahmad said PGB is in talks with both local
and foreign banks to finalise details for the project financing.


The power purchase agreement for the plant will take place soon, he said after the company's Annual General Meeting today.





The power plant, which will be the largest independent power producer
in Sabah, is jointly developed through a 60:40 venture between PGB and
NRG Consortium (Sabah) Sdn Bhd, the energy arm of Yayasan Sabah.


The joint venture company, Kimanis Power Sdn Bhd (KPSB), signed a
contractual service agreement with the consortium of GE Power Systems
Malaysia and GE Energy Parts International in December last year.


The engineering, procurement, construction and commissioning (EPCC)
contract was signed in March this year between KPSB and the consortium
of CTCI Corp, CTCI Malaysia, Synerlitz and SCHB Engineering, said PGB in
its annual report.


Located over 21 hectares, the power plant is scheduled to be
completed in end-2013, to meet Sabah's increasing electricity demand.


As for the re-gasification plant in Melaka, Anuar said it is
expected to be operational in the middle of next year, and will
contribute 10 per cent to annual revenue.


On capital expenditure, PGB chief executive officer Samsudin Miskon
said the company has set aside RM800 million for this year, and between
RM800 million-RM1 billion next year for this purpose from internal
funds.


The fund will be utilised for among others, Plant Rejuvenation and
Revamp (PRR) two and three and also the EPCC of the Kimanis, he added.


On the listing of Gas Malaysia Sdn Bhd, Anuar said as a
shareholder, PGB has agreed to it but was unsure of when it would take
place.


"I think it will be sometime this year (but not sure)," he said.


PGB reported a 53 per cent increase in pre-tax profit to RM1.9
billion for the year ended March 31, 2011 from the RM1.244 billion,
registered previously.


Revenue was higher at RM3.525 billion, from the RM3.222 billion
recorded previously, due to higher gas transportation income and
utilities sales.


Its share price stood at RM13.48, down two sen as at midday close. -- Bernama