KUALA LUMPUR: Gas Malaysia Bhd
, a unit of MMC Corp Bhd, has taken a significant step in strengthening Malaysia’s energy security with the signing of a joint development agreement with Tokyo Gas Co Ltd and VTTI BV for the proposed development of a liquefied natural gas (LNG) regasification terminal (RGT) in Yan, Kedah.
Gas Malaysia said the project marked a significant step in strengthening Malaysia’s long-term energy resilience by introducing a new LNG entry point in the northern region of Peninsular Malaysia.
RGT Yan is expected to enhance supply flexibility, diversify sources of gas, and support growing energy needs of the region’s industrial and power sectors, it said. Envisaged as an offshore floating storage and regasification unit located off Pulau Bunting, Yan, the facility is expected to have a capacity of up to six million tonnes per annum.
“With an estimated development cost of between RM2bil and RM3bil, the project represents a major long-term investment in Malaysia’s energy infrastructure,” said Gas Malaysia.
It added that under the collaboration, it will serve as the project lead, working alongside Tokyo Gas and VTTI to combine complementary strengths across the LNG value chain.
It said that following the Energy Commission’s issuance of the letter to proceed in March 2026, the project is now advancing to its next phase of development, including technical, commercial, and regulatory workstreams, as it moves towards a final investment decision.
Once completed, RGT Yan 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, it said.
It added that the project reinforces Gas Malaysia’s ongoing transformation from a domestic gas distributor into a strategic energy infrastructure player.
This is in line with its GM32 vision to drive long-term growth while supporting Malaysia’s broader energy transition.
The 10-year strategy is aligned with its sustainability plan. — Bernama