KUALA LUMPUR (Feb 10): Prolonged uncertainty on the Regasification Terminal Lahat Datu (RTLD) project in Sabah has resulted in the termination of the shareholders agreement between Petronas Gas Bhd and Sabah Energy Corp Sdn Bhd, on the project estimated to be worth RM1 billion.

Petronas Gas told Bursa Malaysia via a filing that the parties agreed to mutually terminate the agreement today.

“In view of the prolonged uncertainty of the RTLD project, the parties to the shareholders agreement for Regas have mutually agreed to terminate the said SHA effective Feb 10, 2016,” it said.

On Sept 10, 2012, Petronas Gas offered Sabah Energy, which is a Sabah state entity, to acquire up to 20% stake in the project.

Sabah Energy was supposed to subscribe to one ordinary share of RM1,000, with the agreement enabling it to subscribe up to 20% of the equity within a stipulated timeframe.

It was reported that RTLD would be the vehicle of a joint venture between the companies of which it would be responsible for the overall coordination and strategic management of the project during the development stage, and will also own, operate and maintain the facilities.

The facility was scheduled to be completed in 2015 and was expected to have a production capacity of 0.76 million tonnes per annum.

However, the project faced numerous challenges, including a halt as a result of the Lahad Datu insurgency in February 2013, and in late June last year, was issued a stop work order due to security concerns in that area.

Petronas Gas closed 18 sen or 0.8% lower at RM22.32 today, for a market capitalisation of RM44.16 billion.