What components make up the average natural gas selling price?

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Average Natural Gas Selling Price Components Detailed

The average natural gas selling price for Gas Malaysia Energy and Services Sdn Bhd's (GMES) distribution segment for the fourth quarter of 2021 is comprised of several key charges. This price, set at RM36.42 per million British Thermal Units (MMBtu), includes the cost of transportation and distribution, alongside the base commodity price. The specific period for this pricing structure is from October 1 to December 31, 2021.
Transportation and Distribution Tariffs

A significant portion of the average selling price is allocated to tariffs covering the infrastructure necessary for gas delivery. Specifically, the Transportation Tariff amounts to RM1.19 per MMBtu, reflecting the costs associated with moving natural gas through pipelines. Additionally, a Distribution Tariff of RM2.05 per MMBtu is included, which covers the expenses related to the local network that delivers gas to end-users.
Discontinuation of Legacy Gas Cost Pass Through

Effective October 1, 2021, a previous charge known as the legacy Gas Cost Pass Through will no longer be applied. This component had previously added RM0.62 per MMBtu to the overall price. Its discontinuation marks a change in the pricing mechanism for natural gas delivered during this period.
Exclusions from Pricing Determination

It is important to note that this specific average selling price determination does not extend to all natural gas sales. The RM36.42 per MMBtu price is not applicable to natural gas sold for use in natural gas vehicles. Furthermore, it does not apply to liquefied petroleum gas (LPG) that is supplied either in gas cylinders or in bulk.

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What components make up the average natural gas selling price?

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