The Malaysian gas provider said in a filing to the stock exchange that the LTP represents a “significant” development which enables the project to progress into the next phase of implementation, including detailed engineering, financing progression, site preparation, and other related preparatory works.
Located in Yan, Kedah, to the west of Pulau Bunting, RGT Yan includes an offshore floating storage and regasification unit (FSRU) with a planned regasification capacity of up to 6 mtpa, according to Gas Malaysia.
The project is currently estimated to cost approximately 2 billion to 3 billion Malaysian ringgit ($511-766 million).
Gas Malaysia said the manner of funding for the project would be determined at a later stage.
Moreover, the LTP remains subject to “certain conditions imposed by the EC, which the company is required to fulfil within the stipulated timeline, in order to progress the development of the project.”
“For the avoidance of doubt, the issuance of the LTP does not constitute a final investment commitment for the project,” the company added.
According to Gas Malaysia’s website, MMC Corporation holds 30.93 percent in the company, Tokyo Gas-Mitsui 18.50 percent, Petronas Gas 14.80 percent, and the public holds 35.77 percent.
The company operates through two segments: natural gas and LPG, and others.
It has developed approximately 2,839 kilometers of gas pipelines across Malaysia, supplying natural gas to over 1,077 industrial customers.
In addition, it supplies natural gas and LPG to approximately 2,010 commercial customers and about 22,032 residential customers.
While Malaysia is an exporter of LNG via Petronas-operated facilities, production in Malaysia cannot meet domestic demand, and it imports LNG from other countries.
Malaysia has two LNG terminals in Pengerang and Melaka, both operated by Petronas Gas.
