KUALA LUMPUR, Dec 8 — Petronas Gas Bhd (PGB) has approved a "final investment decision (FID)” for the construction of a new gas compressor station project in Kluang, Johor with a total investment cost estimated at RM460 million.

The company said it would be constructing and installing a new gas compressor station in Kluang, which is aimed at increasing the gas capacity of Peninsular Gas Utilisation (PGU) II, particularly in the southern region, as part of PGB’s gas transportation business.

"The additional gas capacity resulting from this project is aimed to spur the growth of gas demand in the southern region from various industries and provide security of supply to the existing gas users in this region,” it said in a filing with Bursa Malaysia today.

The project is targeted to be completed and commissioned in the first quarter of 2024.

"PGB will utilise its existing Islamic financing facility from RHB Islamic Bank Berhad to fund the project cost,” the company said and added that there would be no material effect on its earnings per share, net assets per share, and gearing for the financial year ending December 31, 2021. — Bernama