KUALA LUMPUR (July 20): Petronas Gas Bhd's (PetGas) 100%-owned subsidiary Regas Terminal (Sg Udang) Sdn Bhd (RGTSUSB) is seeking expressions of interest (EOIs) from shipping licensees for regasification capacity at RGTSUSB's Melaka regasification facility, to gauge potential demand in 2023 for regasification, which converts liquefied natural gas to natural gas.

RGTSUSB's Melaka regasification facility is known as the Regasification Terminal Sungai Udang (RGTSU), which has a storage capacity 260,000 m3 of natural gas.

"In anticipation of annual operation planning for year 2023, RGTSUSB wishes to call for EOI from shipping licensees for regasification capacity at RGTSU.

"The intention of this EOI is for RGTSUSB to gauge potential demand for regasification capacity at RGTSU for effective operation planning in support of gas market liberalisation in Peninsular Malaysia," PetGas said in an announcement on its website.

PetGas said the EOI is open to shipping licensees only, and that the EOI is to be made through the submission of a completed access request form (ARF).

"Applicant(s) to submit EOI via ARF to RGTSUSB including the capacity required and duration no later than 1600 [hours, Aug 5,] 2022, Malaysian time.

"All applicants shall be notified in writing on the assessment results latest by [Sept 2,] 2022.

"Successful applicant(s) to provide confirmation of the offer and provide commitment bank guarantee to RGTSUSB latest by [Oct 7,] 2022," PetGas said.

PetGas said the EOI assessment criteria include technical feasibility, credit risk and legal compliance assessments.

According to PetGas, RGTSU began its commercial operation in the second quarter of 2013. The facility is owned and operated by RGTSUSB.

RGTSU is known as the world's first-of-its-kind regasification unit on an island jetty, according to PetGas.

"Two floating storage units are equipped at the facility to receive and store LNG (liquefied natural gas) prior to being regasified and injected into Malaysia's Peninsular Gas Utilisation pipeline network," PetGas said.

At Bursa Malaysia on Wednesday (July 20), PetGas' share price rose 44 sen or 2.66% at 4.22pm to RM16.96 for a market value of about RM33.58 billion.

PetGas has 1.98 billion outstanding shares, according to its latest quarterly financial report.