KUALA LUMPUR (June 8): Muhibbah Engineering (M) Bhd (KL:MUHIBAH) has secured a contract worth about RM300 million to build part of a regasification terminal in Lumut, Perak.

The job involves engineering, procurement, construction and commissioning of the marine structure and ancillary works for the liquefied natural gas Regasification Terminal 3 located at the Lumut Maritime Terminal 2, the company said in an exchange filing on Monday.

The contract is scheduled to commence in May 2026 and expected to be completed by July 1, 2028.

Terminal 3 is being developed by PETRONAS Gas Bhd (KL:PETGAS) and a unit of Tenaga Nasional Bhd (KL:TENAGA) based on a floating storage regasification unit that could store up to 170,000 cubic metres of natural gas and supply up to 500 million standard cubic feet of gas per day.

Regasification terminals are facilities used to receive natural gas in its liquid, superchilled form transported by specialised vessels, before converting it back into gaseous form for distribution into the gas pipeline network.

The contract marks the second major contract secured by Muhibbah Engineering this year after the construction firm clinched a RM120 million subcontract in April from Gamuda Bhd (KL:GAMUDA) under the Penang LRT Mutiara Line project.

Shares of Muhibbah Engineering closed unchanged at 51 sen on Monday, giving the company a market capitalisation of RM374.17 million ahead of the contract announcement.