PETALING JAYA: Petroliam Nasional Bhd’s (Petronas) subsidiary Petronas Gas Bhd (PGB) has entered into two sales and purchase agreements for 22 years each, with Polyplastics Asia Pacific Sdn Bhd (PAP) to provide utility solutions.
The first agreement is for the supply of steam to PAP, which is a new business secured from the Japan-owned company, while the second agreement is for the extension of the existing electricity supply by PGB.
“The contract extension is a testimony of our customers’ confidence in us to provide a reliable supply of power at a competitive tariff from PGB’s co-generation (COGEN) plant in Gebeng,” PGB managing director and CEO Kamal Bahrin Ahmad said in a statement today.
He said it is also PGB’s aspiration to be a preferred total solutions provider, as reflected by its long-term business relationship with PAP and the other customers based at the Gebeng Industrial Park in Kuantan, Pahang.
Established in 1997, PAP is a wholly owned subsidiary of Polyplastics Limited Company, Japan, and is a multinational company involved in the business of engineering plastics.
“PAP is proud to enter into a long-term agreement with the infrastructure owners, PGB, which signifies a new phase in our journey towards serving our customers,” PAP managing director Yoshimitsu Shirai said.
Both the electricity and steam are generated by PGB’s 350MW COGEN facility, which has been the main driver since 1999, in providing total utilities solutions and offering competitive power and steam tariff to its customers.
Other than Gebeng, PGB also operates similar facilities in Kerteh, to serve the Kerteh Integrated Petrochemical Complex.
In addition to the utilities business, PGB also operates two regasification terminals namely, Regasification Terminal Pengerang located in the Straits of Johor and Regasification Terminal Sungai Udang located in Malacca.
These two regasification terminals have a total combined capacity of 660,000 Nm3 (normal cubic metre), which is among the largest in the region.
Investment in the two regasification terminals signifies PGB’s commitment in supporting the government’s third party access initiative, which aims to allow the Energy Commission’s licensed third-party shippers to bring gas into the country.
