Malaysia says gas concerns hurting investment-report

KUALA LUMPUR, Jan 13 (Reuters) - Concerns over gas supply have forced eight foreign companies to defer investments worth up to 8 billion ringgit ($2.24 billion) in Malaysia, a senior government minister was quoted as saying on Tuesday.

International Trade and Industry Minister Muhyiddin Yassin said companies who have deferred investments include Samsung [SAMECP.UL] and Nippon Electric Glass (5214.T), the Star newspaper reported.

He said the companies were concerned with the supply of gas to their plants rather than the pricing.

Malaysia is a producer and exporter of natural gas, and while there is no gas shortage, concerns of over supply to industries remain due to the distribution infrastructure.

"This had affected investments ranging from 5 billion ringgit to 8 billion ringgit," the newspaper quoted him as saying.

State-controlled gas supplier Petronas Gas (PGAS.KL) has stated it was unable to redistribute the gas supply before 2014, said Muhyiddin.

"We are pushing it to be earlier as the industry needs gas," he said.

The companies affected were involved in steel manufacturing and electronics, and were from the U.S., Europe, Japan and South Korea, he said.

Petronas Gas operates six Gas Processing Plants (GPP), which have a combined gas production capacity of more than 2,000 million standard cubic feet (mmscfd) in addition to producing by-products such as ethane, propane, butane and condensates. (Reporting by Faisal Aziz; Editing by Kazunori Takada)