KUALA LUMPUR (Sept 7): Gas Malaysia Bhd (KL:GASMSIA) is working with PETRONAS Gas Bhd (KL:PETGAS) to study construction of a pipeline connecting the proposed liquefied natural gas (LNG) regasification terminal in Yan, Kedah to the Peninsular Gas Utilisation (PGU) system.
In a bourse filing, Gas Malaysia said it had entered into a joint study and collaboration agreement with PETRONAS Gas to conduct a feasibility study on the proposed pipeline.
PETRONAS Gas is the gas infrastructure unit of state-owned oil company Petroliam Nasional Bhd. The group is currently the major shareholder in Gas Malaysia, with a 14.8% direct stake.
The study will assess the technical, operational and commercial viability of the proposed interconnection, including engineering design, land acquisition requirements and other technical matters needed for PETRONAS Gas to confirm the proposed connection.
Gas Malaysia said the outcome of the study will provide information needed to progress the Yan project and support the company’s submission to the Energy Commission of Malaysia.
Earlier in March, Gas Malaysia said it had secured regulatory approval to advance the LNG regasification terminal project.
The group then announced two months later that it would partner with Japan’s Tokyo Gas Co Ltd and the Netherlands-based VTTI BV to develop an LNG regasification terminal in Yan, Kedah, at an estimated cost of up to RM3 billion.
Gas Malaysia will act as project lead and sponsor with a 70% participating interest, while Tokyo Gas and VTTI will each hold 15%.
The regasification terminal forms part of the Pulau Bunting Integrated Development, a RM14.4 billion initiative launched in September 2022.
The integrated development includes a 1,600MW combined cycle gas turbine power plant, a ship-to-ship gas transfer hub and the LNG terminal, which are designed to strengthen energy supply for the northern region of Peninsular Malaysia.
The development is a joint venture between MMC Group Bhd and SKS Corp Sdn Bhd.
Shares of Gas Malaysia ended two sen or 0.4% higher at RM5 on Monday, giving it a market capitalisation of RM6.42 billion.