KUALA LUMPUR, June 30 — The validity period of the existing gas supply agreement between Petroliam Nasional Bhd (Petronas) and Petronas Chemicals Group Bhd (PCG) for the supply of ethane and propane as feedstock for plant operations at Petronas Chemicals Olefins Sdn Bhd (PCOSB) has been extended from July 1, 2023 on the same terms and conditions for a minimum of six months.
In a filing with Bursa Malaysia today, PCG said the agreement between Petronas and PCOSB was entered for a duration of 21 years from July 1, 2002 to June 30, 2023.
It said subsequently, the agreement was novated from PCOSB to PCG’s wholly-owned subsidiary, Petronas Chemicals Marketing (Labuan) Ltd (PCML), on April 1, 2018 and from Petronas to its wholly-owned subsidiary Petronas Energy and Gas Trading Sdn Bhd (PEGT) on November 30, 2018.
“The board of directors, having taken into consideration the recurrent related party transaction (RRPT), is of the opinion that the extension is in the best interest of PCG.
“The extension will not have material effect on the earnings, net assets or gearing of PCG for the financial year ending Decembera 31, 2023,” it added. — Bernama
