Petronas Gas, a subsidiary of internationally integrated oil and gas giant Petronas in Malaysia, will be constructing a 42-km long gas pipeline from its existing Peninsular Gas Utilization (PGU) II to a power plant in Pulau Indah, Selangor. The cost of the pipeline an estimated RM541 million.
The company said on Monday the 36-inch diameter pipeline will transport natural gas to a prospective 1,200 megawatt gas fired, combined-cycle gas turbine power plant in Pulau Indah, and the related industrial areas along its route.
Petronas Gas said the plant will require about 137 million standard cubic feet supply of natural gas. This project is estimated to be completed and commissioned in the first quarter of 2023.
Petronas Gas will utilise its Islamic financing facility from RHB Islamic Bank Bhd to fund the project. Yesterday the company executed a facility agreement with the bank for a maximum aggregate principal amount of up to RM1.3bil.
The three-year financing facility shall have a tenure of three years and shall be available to the company for 30 months from the first utilisation.