SHAH ALAM: State-linked company Kumpulan Perangsang Selangor Bhd marked its first venture into the oil and gas industry after its subsidiary signed an agreement to purchase a 40 per cent equity stake in NGC Energy Sdn Bhd.

NGC Energy had on May 9 purchased a liquefied petroleum gas (LPG) business from Shell, which is the second largest LPG supplier in Peninsular Malaysia with a 22 per cent domestic market share and annual sales volume of 230,000 tonnes.

“The LPG business is expected to contribute RM7 million to RM8 million in dividends a year (to Perangsang Oil and Gas Sdn Bhd) from 2014,” said Perangsang Selangor managing director Suhaimi Kamaralzaman at a press conference.

Perangsang Oil and Gas signed the subscription and shareholders agreement with NGC Energy and its parent company NGC Consolidated Holdings Sdn Bhd at Quality Hotel on Monday.

Suhaimi said the company was paying RM40m to NGC Energy for the 40 per cent stake, which will be financed by internal funds.

NGC Energy chief executive officer Goutam Sukhamoy Sen said the LGP business purchased from Shell was the Middle Eastern company’s first investment in Malaysia. He said NGC Energy expects to secure an operating licence from the government within the next six to eight weeks now that it has a bumiputra partner.

The signing ceremony was witnessed by Menteri Besar Tan Sri Khalid Ibrahim, who said he was “very proud” of Perangsang Selangor for securing the deal with a reputable foreign company.

NGC Energy and NGC Consolidated Holdings are owned by Oman’s National Gas Company SAOG. Its chairperson Sheikh Abdulla Suleiman Hamed Al-Harthy also attended the event.