KUALA LUMPUR (Dec 2): RHB Research is maintaining its Outperform on Petronas Gas with a fair value of RM14.50 following Petronas’ consideration of a third LNG regasification plant in Lumut, Perak.
News reports on Friday said the third plant, if built, would address the shortage of gas supply to the power sector and industrial users in Peninsular Malaysia.
RHB Research said this proposal would be long-term positive for Petronas Gas as it ensures that the LNG business segment will continue to expand beyond the first LNG regasification plant in Melaka that is expected to come onstream July to August 2012.
Under the proposal, Petronas Gas is will manage the distribution via its pipelines. At present, Petronas Gas is not involved in the second plant in Sabah.
News reports on Friday said the third plant, if built, would address the shortage of gas supply to the power sector and industrial users in Peninsular Malaysia.
RHB Research said this proposal would be long-term positive for Petronas Gas as it ensures that the LNG business segment will continue to expand beyond the first LNG regasification plant in Melaka that is expected to come onstream July to August 2012.
Under the proposal, Petronas Gas is will manage the distribution via its pipelines. At present, Petronas Gas is not involved in the second plant in Sabah.
