KUALA LUMPUR (June 8): Gas Malaysia Bhd (KL:GASMSIA) said it will jointly develop a regasification terminal in Yan, Kedah, with Japan’s Tokyo Gas Co Ltd and VTTI BV of the Netherlands.
The offshore project, costing up to RM3 billion, will introduce a new liquefied natural gas entry point in the northern region of Peninsular Malaysia, Gas Malaysia said in a statement. The floating storage and regasification unit is expected to process up to six million tonnes per year, the company noted.
If successful, the regasification terminal is expected to strengthen Malaysia’s energy security, support economic growth in the northern region, and enhance the resilience of the national gas supply system, Gas Malaysia said.
The developers are now working on the technical, commercial and regulatory aspects of the project towards a final investment decision. A final investment decision in the oil-and-gas industry typically takes years and is a sign that a project will proceed following extensive studies and planning.
The project owner then approves the budget, allowing contractors to acquire materials as well as equipment to begin work.
Under the joint development agreement signed, Gas Malaysia will serve as the project lead, while Tokyo Gas contributes expertise in procurement and regasification and VTTI provides input on terminal development and operations.
“Exploring collaboration with globally recognised players such as Tokyo Gas and VTTI allows us to leverage international best practices while anchoring the project firmly within Malaysia’s national energy agenda,” said Gas Malaysia chief executive Azli Mohamed.