PETALING JAYA: Gas Malaysia Bhd
has entered into a joint development agreement with Tokyo Gas Co. Ltd. and VTTI B.V. for the proposed development of a liquefied natural gas (LNG) regasification terminal in Yan, Kedah.
Gas Malaysia, in a Bursa Malaysia filing, said this collaboration is aimed at strengthening national energy security and diversifying the LNG import infrastructure in Peninsular Malaysia.
Under the agreement, Gas Malaysia will act as project lead and sponsor during the joint development phase leading towards the final investment decision.
The total estimated development cost for the project is RM72mil, with Gas Malaysia contributing RM49.8mil based on its 70% participating interest, while Tokyo Gas and VTTI will each hold 15%.
The company said the project is expected to support industrial and power sector growth in northern Malaysia while positioning the group to capture long-term opportunities from the country’s energy transition agenda.
