KUALA LUMPUR (Oct 1): Petroleum Sarawak Bhd (Petros) has partnered Norway-based maritime energy infrastructure group Höegh Evi to jointly develop Sarawak’s first liquefied natural gas (LNG) regasification facility in Kuching, with first gas targeted by end-2029.

The two parties have signed a joint development agreement to develop, own and operate the Kuching LNG Terminal, which will form part of the Kuching Low-Carbon Hub (KLCH), Petros said in a statement on Thursday. 

The terminal will use a floating storage and regasification unit, essentially a vessel that receives LNG and converts it back into natural gas before it is supplied onshore.

It will also include mooring facilities, subsea and onshore pipelines, as well as receiving facilities on land. 

Petros said the terminal would provide gas to Kuching and surrounding areas to meet growing energy demand and strengthen Sarawak’s energy security.

The gas supply would initially support power generation while helping lay the groundwork for wider industrial development under the KLCH. 

“The Kuching LNG Terminal is a strategic investment to drive Sarawak’s next phase of economic development,” said Petros group chief executive officer Datuk Janin Girie.

He said the project would provide the infrastructure needed to bring natural gas to Kuching while helping attract higher-value investments and new industries.

Petros said the terminal could also support services such as small-scale LNG distribution, truck loading, bunkering, storage and reload activities.

This would give the facility flexibility to supply gas beyond Kuching to other parts of Sarawak as demand grows.

The KLCH was launched in November 2024 under the Sarawak Gas Roadmap.

Petros had in May 2025 signed a strategic cooperation agreement with China Jiangsu International Economic and Technical Cooperation Group Ltd to support the hub’s master planning.

Petros is Sarawak’s sole gas aggregator, with responsibilities covering gas procurement, distribution, import, regasification and supply.