KUALA LUMPUR (April 7): One week on since the Putra Heights gas pipeline fire, and supply has resumed for a number of affected companies, while others continue to face disruption, with some relying on pricier alternative fuel sources to ensure operational continuity.

However, supply stability concerns remain, as the situation has remained fluid, with more areas and industries potentially affected as a result of the April 1 incident. 

When contacted by The Edge, Nestle (M) Bhd (KL:NESTLE) said its factories along Jalan Playar, Shah Alam, faced “minimal disruption” as the incident happened during a planned maintenance period.

"Gas supply to our operations has been restored at a level, to ensure a minimum operational continuity," it said in a written reply.

However, it said that given the high number of factories impacted, including a number of its suppliers, "the broader concern relates to their ability to ensure stable supply when impacted by the situation".

Meanwhile, DRB Hicom Bhd’s (KL:DRBHCOM) 50.1%-owned Proton Holdings Bhd and Fraser & Neave Holdings Bhd (KL:F&N) told The Edge they expect no disruption to their operations.

Proton said its production line in Shah Alam faced no material impact due to the gas pipeline explosion, although it is monitoring the situation and potential impact to its vendors. 

Meanwhile, F&N said production at its production will "proceed as scheduled" and it does not anticipate any operational disruption. The group has "swiftly activated our contingency plan" to manage any impact from the disruption, it said, without elaborating.

As for SD Guthrie Bhd (KL:SDG), its downstream business SD Guthrie International Ltd said one of its refineries experienced a brief shortage, but noted this did not affect its supply to customers due to its available palm oil stocks, which it maintains as contingency measure.

“We also had alternative sources of fuel available as a substitute. It is business as usual now,” it said in an emailed response to The Edge.

Natural gas is used across multiple sectors, from steelmaking to printing, and manufacturing of food products and packaging.

Broadly speaking, industrial players use gas for heating in one of two ways — via a boiler or direct heating.

In the case of a boiler, alternatives are available in the event of a gas disruption, such as pricier diesel or medium fuel oil. Meanwhile, alternatives to direct heating are much harder to come by.

While gas can be delivered via tankers in liquefied natural gas (LNG) form, the available tanker fleet size and mobile infrastructure among existing gas suppliers is insufficient to support all affected companies. 

The Edge has reached out to other potentially affected companies for comments.

Earlier, Malaysia Smelting Corp Bhd (KL:MSC) in a bourse filing said its tin production facility at Port Klang was disrupted by the curtailed gas supply, but underlined that the financial impact at this juncture remains unclear.

Meanwhile, candymaker Khee San Bhd (KL:KHEESAN) said its manufacturing facilities were affected by the disruption but assured that it has sufficient inventory to meet demand until Gas Malaysia Bhd (KL:GASMSIA) resolves the gas curtailment issue — which is slated for April 20.

Following the April 1 explosion involving a section of the gas transmission pipeline owned by Petronas Gas Bhd (KL:PETGAS), Gas Malaysia said areas facing disrupted supply include Shah Alam, Kundang, Petaling Jaya, Teluk Panglima Garang, Port Klang and Pulau Indah.

However, on Monday, this geographical net was expanded to include Merbau, Tronoh, Perai, Junjung and Hutan Melintang, with the gas distributor saying that it was informed of "operational limitations" as part of a subsequent notification from its gas supplier. The firm, which operates gas distribution pipelines, sources bulk of its gas from a unit of Petroliam Nasional Bhd (Petronas) through gas transmission pipelines.

Shares in Nestle ended Monday RM1 or 1.37% higher at RM74, valuing the group at RM17.35 billion. DRB Hi-Com shares closed 4.5 sen or 6.82% lower at 61.5 sen, valuing the group at RM1.19 billion.

Shares in F&N settled 32 sen or 1.35% lower at RM23.30, giving the group a market capitalisation of RM8.55 billion. SD Guthrie’s shares ended 15 sen or 3.13% lower at RM4.64, valuing the group at RM32.09 billion.

Malaysia Smelting Corp closed 32 sen or 12.5% lower at RM2.24, giving the company a market capitalisation of RM940.8 million. Shares in Khee San ended one sen or 3.51% higher at 29.5 sen, valuing the group at RM41.22 million.