Gas Malaysia on expanding into bio gas distribution

From the Star:

KUALA LUMPUR: Gas Malaysia Bhd has partnered with Sime Darby Offshore Engineering Sdn Bhd to undertake a biogas compressed natural gas distribution business extracted from the palm oil mill effluent.

In a statement to Bursa Malaysia on Tuesday, Gas Malaysia said the joint venture would involve the provision of the sale, supply and transportation of BioCNG to customers and carrying out of the design, construction, installation, commissioning and operation of pressure regulating unit at each customer’s premises.

Gas Malaysia said the tie-up was formed as both parties seek to optimize the combined strengths of each partner.

BioGas distribution is a pretty new business and is another commodity distribution business, different from natural gas.

I think Gas Malaysia did the ROI and seemed to be satisified that over a long enough time horizon the investment will bring a return to shareholders.  But why am I not so interested?

The growth prospects on this new project could be very good but it is still a commodity distribution business, similar to the one they are in now.  It's like doubling down on commodity distribution which I don't think is a good idea.  They are the one the biggest natural gas distributors in Malaysia.  They should leverage their stable business and do something with the potential for real returns.

I think I would be interested then.