PETRONAS Gas Berhad (PETGAS) announced the approval of revised tariffs for gas transportation and regasification services under Regulatory Period 3 (RP3), which will run from 1 January 2026 until 31 December 2028.
In summary, RP3 base tariffs were broadly higher compared to RP2 (2023-2025) entailing a +12.5% increase for the Peninsular Gas Utilisation pipeline (PGU) and a +2.5% increase for RGT Sg.
“While the broadly higher tariffs look positive on the surface, we await further details to determine the key drivers for the higher tariffs,” said TA Securities (TA).
In hindsight, however, TA reckons RAB is likely to continue expanding under RP3 from sustained regulated capital expenditure (and potentially higher capex for PGU to maintain integrity of assets following the pipeline fire incident in April 2025), which should underpin PETGAS’ regulated earnings growth under RP3.
In the financial year 2023 (FY23) and FY24, the regulated businesses contributed to 52% of group gross profit.
PETGAS is positioned well as one of the key upstream proxies to the energy transition from coal to gas as well as data centre-driven demand for power, being the largest gas supply infrastructure owner and operator in the country.
Dividend yield is decent at 4.4%-5.2% throughout our forecast horizon backed by stable long-term contracts and regulated businesses. —Dec 29, 2025
Main image: The Vibes
