MLNG PLANT IN BINTULU..........PIX FOR HANIN ADNAN AT BIZ DESK.
KUALA LUMPUR: Petronas Gas Bhd
(PGas) and Sabah state-owned Sabah Energy Corp Sdn Bhd (SEC) have scrapped their proposed RM1bil joint-venture to construct and develop liquefied natural gas (LNG) regasification facilities in Lahad Datu, Sabah.
In a filing with Bursa Malaysia, PGas said the termination of the shareholders agreement effective Feb 10 was in view of “the prolonged uncertainty” of the regasification terminal project. No detail was given in the announcement.
PGas had on Sept 10, 2012, signed the shareholders agreement whereby the two parties would undertake the proposed project through Regas Terminal (Lahad Datu) Sdn Bhd (RGT), a PGas unit.
Under the agreement, SEC would subscribe to 1 share of RM1,000 in RGT, which had a paid-up capital of RM2,000. SEC had the option to subscribe up to 20% of RGT’s equity within 12 months of the commercial operation of the LNG facilities.
SEC would be given up to six months after the commercial operation date of the facilities to subscribe to the full 20% portion of the equity at par value. Beyond the six-month period and up until 12 months after the commercial operation date, SEC would have to subscribe to the full 20% portion of the equity at a premium.
RGT would be responsible for the overall coordination and strategic management of the project during the development stage and would also own, operate and maintain the facilities.
Based on PGas’ announcement in September 2012, the facilities were scheduled to be completed in 2015 and were targeted to have a send-out capacity of 0.76 million tonnes per annum.
However, the project was put on hold after the Lahad Datu armed intrusion in February 2013.
PGas shares fell 18 sen to close at RM22.32 on Wednesday.
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