KUALA LUMPUR (June 21): Petronas Gas Bhd (PetGas) has awarded a RM92 million contract to undertake a gas pipeline extension to a consortium comprising Carimin Engineering Services Sdn Bhd and I Drill Pipelines Constructions Sdn Bhd.
The job involves the construction of about 10km of lateral pipeline and metering station to supply natural gas to a paper making plant belonging to ND Paper Malaysia (Selangor), which is part of China's Nine Dragons Paper Ltd.
Hong Kong-listed China Nine Dragons is the largest paperboard producer in Asia, and also has a manufacturing facility in Bentong, Pahang.
PetGas said it intends to utilise its existing Islamic financing facility to fund the cost of the project, which is targeted to complete in August 2023.
Carimin Engineering Services is a wholly-owned unit of oil and gas service provider Carimin Petroleum Bhd.
PetGas' share price closed 36 sen or 2.23% higher at RM16.50 on Tuesday (June 21), valuing the group at RM32.65 billion. Carimin Petroleum rose two sen or 3.77% to 55 sen, giving it a market capitalisation of RM128.63 million.