NGC Energy Eyes Growth Through Stronger Shareholder Partnership, Infrastructure Opportunities

By Siti Noor Afera Abu

KUALA LUMPUR, Oct 26 (Bernama) -- Liquefied petroleum gas (LPG) solutions provider, NGC Energy Sdn Bhd aims to venture abroad while strengthening its presence in the domestic market, supported by its evolving shareholder structure and potential infrastructure opportunities.

Chief executive officer Julianna Kamaruddin said the change in Perangsang Oil & Gas Sdn Bhd’s (POGSB) ownership could bring together industry expertise, logistics and infrastructure capabilities to support NGC Energy's growth.

She said the arrangement would also enable NGC Energy to strengthen its core business, improve supply-chain efficiency and explore related opportunities, including potential LPG landing facilities to enhance its competitiveness and support expansion both locally and overseas.

“This brings renewed strength and vigour to NGC, with the support of both our existing and new shareholders, enabling us to expand our horizons.

“We want to focus on our strengths and what we do best at the moment. With the support from all parties and our business partners, I truly believe we can take this to the next level,” she told Bernama.

The recent change in ownership of POGSB, previously owned by Kumpulan Perangsang Selangor Bhd, followed an acquisition involving Manjaran Sdn Bhd and a new shareholder group associated with Rasmadi Corporation and Mutiara Perlis Sdn Bhd.

The transaction leaves POGSB's 40 per cent stake in NGC Energy unchanged, while transferring ownership and control of POGSB to the new buyers. Oman-based National Gas Company SAOG, NGC Energy’s partner for the past 14 years, holds the remaining 60 per cent stake.

National Gas Company SAOG chairman Sheikh Abdulla Suleiman Hamed Al Harthy said the new shareholder brings capabilities that could contribute to NGC Energy's growth beyond financial investment, particularly through its logistics expertise and commitment to developing the business.

“We wanted a partner who could contribute to the business more than just injecting money. They have expertise in logistics, while we specialise in LPG, so we thought combining these strentgths would help improve NGC Energy’s performance as we move forward,” he said.

Perlis Infrastructure to Open New Growth Opportunities

Julianna said supply-chain capabilities would be a key factor in strengthening NGC Energy’s competitiveness, particularly through potential collaboration with partners involved in logistics and infrastructure development projects.

“Supply chain is important to us. Through our partnership with POGSB and potential opportunities arising from infrastructure projects, we believe we have good leverage and a strong starting point to become more competitive and solidify our current market position,” she said. 

Meanwhile, POGSB chairman Datuk Shabaruddin Ibrahim said Mutiara Perlis’ planned seaport project, Perlis Sanglang Port (PSP) could open up opportunities for NGC Energy to participate in the development of LPG landing facilities and strengthen its supply chain.

Mutiara Perlis is the master developer of the RM27.8 billion Perlis Maritime Corridor (PMC) – a major logistics infrastructure project comprising PSP, Perlis Inland Port (PIP) and Perlis Power Hub.

The PSP project is scheduled to be launched on Oct 28.

Shabaruddin said LPG landing facilities would be a key component of the seaport development, potentially providing a more integrated supply chain and enhancing its competitiveness in the domestic market.

“We would like to see if we can have an integrated supply chain in our company to strengthen our competitiveness, moving forward, and take NGC Energy’s LPG business to the next level in Malaysia,” he said.

NGC Energy could also consider establishing a presence at PIP, a 202.34-hectare facility connected to the rail network and designated as a free commercial zone, he noted.

Shabaruddin said the infrastructure could complement NGC Energy’s LPG operations by supporting the movement of supplies and cylinders, while providing a potential base for the company to strengthen its supply chain and pursue market development opportunities.

Supply Security Key as LPG Industry Faces Challenging 2027

Julianna said supply security would remain a major priority for NGC Energy as geopolitical tensions and changing global trade flows continued to affect the LPG industry.

She said Malaysia still has access to domestic refineries, which helped cushion the impact of disruptions affecting imported supplies, although the company continued to face challenges from higher freight and insurance costs.

“These are very uncertain times. It’s unfortunate what has happened over the past few months, both within the industry and globally, and how it has affected our country. I believe this uncertainty will continue for now,” she said.

She added that the effects of recent geopolitical developments would take time to subside, with 2027 expected to be a particularly challenging year for the industry.

“Next year will be very challenging for us, and that’s why supply security will be critical for the country and we have to work with all parties to take on this challenge together,” she said.

Julianna said LPG is sourced through regional traders, with supplies originating from different parts of the world, including West Asia and the United States.

However, sourcing from more distant markets has resulted in increased transportation costs due to longer shipping routes, higher freight charges and insurance premiums.

She added that cooperation among industry players, government agencies and business partners would be essential to ensure a reliable supply of LPG to Malaysian households and businesses.

-- BERNAMA