Petronas Gas Berhad will undergo a major internal reorganisation to separate its regulated activities from its non-regulated operations, a strategic decision aimed at clarifying its operational structure and enabling more focused capital management. The operation, approved by the board of directors on July 23, received approval from the Ministry of Finance on September 24 for tax exemptions, allowing the group to launch the exercise without fiscal costs linked to the restructuring.
Creation of subsidiaries for key divisions
The affected divisions include gas transportation, gas processing and utilities, which will be transferred to wholly owned subsidiaries through conditional business transfer agreements. Gas transportation will be assigned to PG TransCo Sdn Bhd, gas processing to PG Gas Processing Sdn Bhd, and utilities to PG Utilities East Sdn Bhd, an entity under PG Energia Sdn Bhd. The latter will serve as the holding company for the group’s investments in non-regulated sectors.
The company stated that the reorganisation will clearly separate regulated sectors from commercial segments, making operations more transparent for stakeholders and better aligned with their respective economic models. The group aims to strengthen its position in a changing energy landscape by adapting its structures to market requirements.
Limited short-term impact on results
Petronas Gas specified that the operation will not affect the share capital, shareholder structure, or earnings per share in the short term. Completion is expected in the third quarter of 2026, subject to shareholder approval and authorisation from the High Court. The plan requires at least 75% approval from shareholders present or represented at a court-convened meeting.
PG Energia, as the new umbrella entity for non-regulated segments, will consolidate energy and utility-related projects to enhance competitiveness and strategic alignment. The group expects this consolidation to make its activities more agile in responding to shifts in energy demand.
Stable financial performance during transition
For the first six months of the 2025 fiscal year, Petronas Gas recorded a net profit of MYR918.98mn ($195.1mn), compared to MYR925.64mn ($196.5mn) in the same period last year. Revenue reached MYR3.18bn ($675.4mn), down 2.5% year-on-year. These figures reflect financial stability amid ongoing structural transformation.
