KUALA LUMPUR (May 15): Gas Malaysia Bhd (KL:GASMSIA) has entered into a joint development agreement (JDA) with Japan’s Tokyo Gas Co Ltd and Netherlands-based VTTI BV to develop a liquefied natural gas (LNG) regasification terminal in Yan, Kedah with an estimated cost of up to RM3 billion.
In a Bursa Malaysia filing, the group said the parties will jointly undertake development activities, including technical studies, commercial negotiations, regulatory engagements and project management, while preparing the framework for a potential joint venture.
Gas Malaysia will act as project lead and sponsor with a 70% participating interest, while Tokyo Gas and VTTI will each hold 15%. The development cost is estimated at RM72 million, of which Gas Malaysia will fund RM49.8 million.
Tokyo Gas is deemed a related party as it is an indirect major shareholder via Tokyo Gas International Holdings BV, which owns 80% of Tokyo Gas-Mitsui Co Holdings Sdn Bhd — the latter holding an 18.5% stake in Gas Malaysia.
The JDA follows Gas Malaysia’s receipt of a letter to proceed from the Energy Commission in mid-March for the proposed terminal, which is estimated to cost between RM2 billion and RM3 billion.
Planned as a floating storage and regasification unit, the terminal will be located offshore west of Pulau Bunting in Yan.
Gas Malaysia said the project is expected to enhance national energy security by diversifying LNG import infrastructure and reducing reliance on existing entry points, while supporting industrial and power demand in the northern region.
“The JDA is expected to position Gas Malaysia favourably to capture long-term growth opportunities arising from Malaysia’s evolving energy landscape and energy transition agenda,” it added.
Shares of Gas Malaysia closed up 16 sen or 2.94% at RM5.60 on Friday, giving it a market capitalisation of RM7.19 billion.