The East Malaysian state holds about 60% of the country’s gas reserves and accounts for nearly 90% of its LNG exports. It has established the Sarawak gas roadmap which aims to increase domestic gas usage from 7% to at least 30% by 2030.
DBS Group Research has reiterated its “buy” call and target price of $1.25 for Mainboard-listed Nam Cheong, alluding to a possible re-rating on the horizon.
This comes on the back of the potential finalisation of a commercial agreement between Sarawak’s state-owned Petroleum Sarawak Berhad (Petros) and Petronas, with both parties involved in protracted negotiations since May. Sarawak Utility and Telecommunication Minister Datuk Seri Julaihi Narawi said that the accord will be concluded latest by Dec 31.
