Lower average selling price for natural gas next year

PETALING JAYA: Gas Malaysia Bhd yesterday announced a lower average natural gas selling price at RM33.65/MMBtu for the distribution segment.

This represents a reduction 2.91% or RM1.01/MMBtu compared to the current average price.

This comes as Gas Malaysia Bhd received a directive from the government, via a letter from the Energy Commission, to effect the average selling price for the distribution segment by its wholly-owned subsidiary, Gas Malaysia Energy and Services Sdn Bhd.

The directive is for a period of two years beginning Jan 1, 2020 to Dec 31 2021, with an annual review of the average natural gas selling price.

“Gas Malaysia wishes to clarify that this selling price revision is not applicable to sales of natural gas for natural gas vehicles and liquefied petroleum gas supplied in gas cylinders or in bulk supply,” it said.

The revision in selling prices is expected to continue contributing positively towards the financial position of the company for FY20 ending Dec 31.