Quick take: BTM shares jump 43% on diversification into LPG business

KUALA LUMPUR: Shares in BTM Resources Bhd jumped over 43% in early trade Thursday after the company announced its venture into liquefied petroleum gas (LPG) business.

BTM, one of the top gainers on Bursa Malaysia, surged 43.48%, or five sen to 16.5 sen, its highest since last November, with 4.7 million shares done.

BTM is partnering with Markmore Energy (Labuan) Ltd (MELL) for the proposed production of LPG from natural gas supplied from the Rakushechnoye oil and gas field. The move is aimed at diversifying and expanding its source of income.

A head of agreement (HoA) was inked between the two parties to set out essential terms and conditions for the participation.

Under the agreement, a LPG production plant and gas processing facility with a capacity of 100 million standard cu ft per day will be constructed. BTM agrees to bear the cost and expenses relating to the engineering, design, procurement, construction and commissioning of the LPG plant.

BTM will be entitled to up to 116 metric tons per day of LPG and 3,700 barrels per day of condensate produced at the plant which is expected to result in a minimum return of 12% per annum for the project.

MELL will undertake to exclusively supply natural gas from the Rakushechnoye oil and gas Field for processing at the LPG plant.

Source: TheStar