I am quite familiar with Gas Malaysia as I did some IT work for them before. Based from my understanding, the expansion is not really mean pipeline network, but customer based. This is due to the increase of supply quota from Petronas on the recently signed new gas supply agreement (10 + 5 yrs if I am not mistaken) from 282mmscfd to 422 mmscfd. At the same time the demarcation of supply is now upgraded form only customer consumption below 2 mmscfd to below 5mmscfd. This will translate to more customer using gas as the current limitation for natural gas usage is demand exceed supply That's why demand more than supply and TNB always screaming for more gas for thir power plant from Petronas. If you are in manufacturing line, you will no how costly it is to produce things using other fuel and how long you have to queue to get natural gas piped to you premises.

And do remember, the portion of the extra supply will come from Melaka newly completed natural gas storage complex (gas imported from oversea and stored there before distributed), which is not subsidized. That's means it will be supplied at market price and Gas Malaysia will charge at their own profit margin for this portion.

If you look into their book, never in red since day 1. Yes, they no longer enjoying the ridiculous profit as they used to be (that's why I term it), but they are very stable and always exceed their projected profit. For you info, the staff have been getting an average of 6 month bonus for the last 5 years.

This post has been edited by bobmali: May 24 2012, 10:44 AM