It boasts a monopoly of natural gas supply to Peninsular Malaysia’s
small and medium users. It is tapping into additional gas supply from new
regasficaition terminals including the secured 29% increased in gas supply from
Petronas beginning in 2013.
More RGT projects in Johor and Terengganu, along with clarity on
Malaysia ’s
LNG pricing mechanism will catalyst the stock.
Gas Malaysia
has the highest barrier to entry, being the sole holder of a 20 year license to
distribute gas to customers consuming up to two mmscfd.
It operates downstream of Petronas Gas Bhd which serves power
generation companies and Petronas chemicals bhd. Another barrier to entry is
the heavy capex of about rm1 billion.
Its growth prospects lie in volume growth. It has secured 29% more gas
from Petronas on a stepped up basis, starting FY2013 after LNG imports commence
in Sept 2012.
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