KUALA LUMPUR (Dec 31): Bintulu Port Holdings Bhd (KL:BIPORT) has been granted approval to continue operating the Bintulu Port, Sarawak’s main port for liquified natural gas (LNG), for another 12 months.

A third interim agreement has been formalised between Bintulu Port’s wholly owned unit Bintulu Port Sdn Bhd, the Ministry of Transport and Bintulu Port Authority for the group to continue operating the port from Jan 1 to Dec 31, 2025.

This follows the initial interim agreement for the group’s operations of the Bintulu Port for six months from Jan 1 to June 30, 2023, a second interim agreement for a year from July 1, 2023, to June 30, 2024, and an exercised six-month extension option until Dec 31, 2024.

These interim agreements came as the federal government agreed to transfer regulatory powers over Bintulu Port to the Sarawak state government, resulting in the port’s status going from a federal port to a state port.

“A memorandum of understanding was signed on March 22, 2024, to facilitate this transition. The Ministry of Transport had presented the necessary legislation to Parliament, and both the Federal Port (Repeal) Bill 2024 and the Bintulu Port Authority (Dissolution) Bill 2024 were passed,” it said.

The formal operation agreement being negotiated with the state-level Bintulu Port Authority (Sarawak) and the Sarawak state government is being finalised, according to the group.

Bintulu Port’s largest shareholder is Petronas with a 28.52% stake, followed by the state financial secretary Sarawak with 26.67%, Equisar Assets Sdn Bhd with 15.04%, and KWAP with 9.17%.

Shares in Bintulu Port ended unchanged at RM6 on Tuesday, valuing the group at RM2.76 billion.