Gas Malaysia expected to ink deal with Petronas

GAS Malaysia Bhd, which is en route to listing, is expected to sign a gas sales agreement (GSA) with Petroliam Nasional Bhd (Petronas) early next month.

"They are close to signing the new GSA as I understand it," an analyst who tracked down the oil and gas counter told Business Times.

However, the analyst expects the gas price under the new GSA will remain the same as in the present arrangement.

"Gas price is currently about RM14.05 per million British Thermal Units (mmBTU). No change expected in gas price under the GSA," the analyst said.

The government has reviewed the gas price for the supply of the commodity from Petronas to Gas Malaysia for usage under two million standard cu ft per day from RM11.05 per mmBTU to RM14.05 per mmBTU effective June last year.

In tandem with this increase in price, the average price of gas sup-plied by Gas Malaysia to its customers had also increased from RM15.00 mmBTU to RM16.07 mmBTU.

Gas Malaysia, which published its draft prospectus on the Securities Commission's website in September last year, was initially supposed to float its shares on Bursa Malaysia last December but it was later delayed for listing to April this year.

The biggest shareholders, MMC Corp Bhd and Shapadu (Holdings) Sdn Bhd, currently own 55 per cent of Gas Malaysia, while Tokyo Gas-Mitsui & Co (Holdings) Sdn Bhd and Petronas Gas Bhd hold the remaining 25 per cent and 20 per cent respectively.

It was reported that Gas Malaysia is offering 333.84 million ordinary shares of 50 sen each in its initial public offering (IPO).

This represents 26 per cent of the existing issued and paid-up share capital of Gas Malaysia.

In its prospectus exposure on the SC website, Gas Malaysia said its institutional offering would consist of 147.68 million shares to be offered to Bumiputra institutional and selected investors approved by the International Trade and Industry Ministry, and 155.8 million shares to institutional and selected investors.

The retail offering will consist of 4.66 million shares to be offered to eligible directors and employees of Gas Malaysia, and 25.68 million to the public.

Gas Malaysia sells, markets and distributes natural gas as well as constructs and operates the natural gas distribution system in Peninsular Malaysia.