Malaysia's Petronas Gas receives a nod for its internal reorganisation

Malaysia's Petronas Gas Berhad announced on Wednesday that the Finance Ministry has approved a tax exemption for a proposed reorganization plan which will transfer its core business to three wholly owned subsidiaries.

Petronas Gas is a subsidiary of Petronas Group. In a filing to the stock exchange, the company said that, following approval by the Board of July 23, the Ministry had approved the tax exemption. The letter was sent on September 24, and received on September 30.

In the filing, the company stated that the internal reorganisation would involve the transfer of assets, liabilities, and business undertakings from the core business segments of the gas transportation, processing, and utilities into three wholly owned subsidiaries.

The gas transportation business is being transferred to PGTransCo Sdn. PG Gas Process Sdn. PG Gas Processing Sdn. Bhd.

It said that "this strategic initiative is designed to streamline business segments within the company by creating a distinction between non-regulated and regulated businesses."

Petronas Gas stated that the reorganization is expected to be complete in 2026, barring any unforeseeable circumstances. (Reporting and editing by Ashley Tang)

(source: Reuters)