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MNGV, Jeffa form SPV

Posted by : Kia on Dec 30, 2012 0 comments
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Rahmat (second from left) exchanging documents with Sayed Jaafar after the agreement signing. With them are (from left) MNGV executive director Datuk Muhammad Faizal Musa and Jeffa director Shahrul Yunus. Rahmat (second from left) exchanging documents with Sayed Jaafar after the agreement signing. With them are (from left) MNGV executive director Datuk Muhammad Faizal Musa and Jeffa director Shahrul Yunus.


KUALA LUMPUR: Malaysian NGV Sdn Bhd (MNGV) and Jeffa Holdings Sdn Bhd have formed a special purpose vehicle (SPV) to jointly collaborate on a RM7bil investment comprising a regasification plant in Pasir Gudang, Johor, and 200 natural gas stations nationwide.

The SPV, called Malaysian NGV Venture Capital Sdn Bhd, may issue foreign-denominated bonds, including Islamic bonds, for the purpose of financing the project, MNGV president and chief executive officer Rahmat Ahmad said at a media briefing here yesterday.

The project is expected to be completed by 2016.

Jeffa, which will facilitate the funds for this project, has a 60% stake in the SPV while the remaining stake is held by MNGV.

Of the RM7bil, RM3.6bil is to fund the plant and storage facilities, RM2.4bil for Phase 1 of the construction of the gas station outlets while the remaining RM1bil is for capital expenditure.

“We're still in discussions at the moment with local and foreign banks,” said Jeffa executive chairman Datuk Sayed Jaafar Sayed Ibrahim when asked to elaborate on the financing aspect of the project.

Upon completion, both MNGV and Jeffa will jointly operate the entire project.

The plant will have a capacity of three million tonnes per annum of liquefied natural gas (LNG) to support the initial 200 outlets, which will service the transportation sector as well as other industrial off-takers like independent power producers.

He said MNGV would secure LNG supply from various global suppliers such as Qatar Gas to be used in the production of natural gas although no contracts for this had been finalised.

MNGV has secured the licence from the Government to import LNG, process and distribute natural gas for local consumption

Currently, Petroliam Nasional Bhd has about 150 natural gas outlets nationwide.

“I don't think demand will be an issue at all,” said Sayed Jaafar, adding that natural gas was deemed to be a cheaper alternative to petrol.

The regasification project came on the Government's hope of reducing fuel subsidies, he added.

Rahmat said plans were afoot for another regasification plant with a total capacity of seven million tonnes per annum, possibly in the northern region, and to have 1,000 natural gas stations nationwide by 2020.

Further, he also said that MNGV was considering a dual listing in five years' time after its first plant was in full operation.

“We are considering a dual listing, possibly here and in New York in order to tap demand from international markets,” he told StarBizWeek.


By YVONNE TAN
yvonne@thestar.com.my

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