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Gas Malaysia to Develop RM3 Billion LNG Terminal in Kedah
🇲🇾 Malaysia /Energy & Infrastructure

Gas Malaysia to Develop RM3 Billion LNG Terminal in Kedah

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Gas Malaysia Berhad, part of MMC Group, signed a Joint Development Agreement (JDA) with Tokyo Gas Co., Ltd. and VTTI B.V. to build a Liquefied Natural Gas (LNG) Regasification Terminal (RGT) in Yan, Kedah.
  • The project involves an investment of RM2 billion to RM3 billion and is expected to enhance Malaysia's energy security and diversify gas supply sources.
  • The RGT Yan terminal will be developed as an offshore Floating Storage and Regasification Unit (FSRU) with a capacity of up to six million tons per annum.

Gas Malaysia Berhad, a subsidiary of MMC Group, has entered into a Joint Development Agreement (JDA) with Japan's Tokyo Gas Co., Ltd. and Dutch firm VTTI B.V. to construct a Liquefied Natural Gas (LNG) Regasification Terminal (RGT) in Yan, Kedah.

The significant project, with an estimated investment between RM2 billion and RM3 billion, is poised to become a new LNG gateway in northern Peninsular Malaysia. It aims to bolster the nation's energy security, diversify gas supply sources, and increase the flexibility of the supply system to meet rising demand from industrial sectors and power generation.

The signing of the agreement marks a significant step in the company's efforts to expand its role in the LNG value chain. Collaboration with global players like Tokyo Gas and VTTI allows us to leverage international expertise and best practices while ensuring this project aligns with Malaysia's national energy agenda.

— Azli MohamedPresident and Group CEO of Gas Malaysia, commenting on the importance of the Joint Development Agreement.

The Yan Regasification Terminal (RGT Yan) will be developed as an offshore Floating Storage and Regasification Unit (FSRU) located near Pulau Bunting. It will have a substantial capacity of up to six million tons per annum (MTPA).

By leveraging our expertise in LNG terminal operations in Japan and our experience through participation in FSRU projects in the Philippines, we hope to cooperate with Gas Malaysia and VTTI to contribute to the development of the LNG and gas value chain in Malaysia.

— Kasutani ToshihideExecutive Vice President of Corporate Overseas Business and Representative of Tokyo Gas, expressing commitment to the project.

Azli Mohamed, President and Group CEO of Gas Malaysia, highlighted the agreement as a crucial step in expanding the company's role in the LNG value chain. He noted that collaboration with global players like Tokyo Gas and VTTI allows them to leverage international expertise and best practices, ensuring alignment with Malaysia's national energy agenda.

Under the partnership, Gas Malaysia will lead the project, drawing on its deep understanding of the domestic market and infrastructure development experience. Tokyo Gas will contribute its extensive expertise in LNG procurement and regasification, while VTTI brings its strong global track record in developing and operating energy terminals. The project is expected to reach its Final Investment Decision (FID) after obtaining a Letter of Intent to Proceed from the Energy Commission in March 2026.

RGT Yan supports our strategy to develop global LNG terminal platforms and strengthen supply security as Malaysia continues its gas market liberalization. Malaysia is an important country for VTTI, and we look forward to supporting the nation's energy resilience and long-term growth.

— Tom SmeenkExecutive Vice President of Growth at VTTI, highlighting the strategic importance of the project for both VTTI and Malaysia.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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