The Malaysian gas provider said in a filing to the stock exchange that the agreement establishes the collaboration framework between the three firms for the proposed development of the LNG regasification facility.
Gas Malaysia noted that the collaboration with TG and VTTI brings together complementary technical, operational, and infrastructure expertise across the LNG value chain, which is expected to enhance the project’s development capabilities, commercial readiness, and long-term viability.
Moreover, the agreement also provides a structured governance framework for the joint development phase leading towards final investment decision (FID), being the stage where the parties will decide whether to proceed with the implementation and investment commitment for the project following the completion of the necessary technical, commercial, regulatory, and financial assessments, it said.
According to th Malaysian firm, during the joint development phase, the parties shall bear the agreed development costs in proportion to their respective participating interests of 70 percent for Gas Malaysia, 15 percent each for TG and VTTI, which reflect the envisaged equity participation of the parties should the proposed joint venture for the project be formed following a positive FID.
The total estimated development cost under the agreement is 72 million Malaysian ringgit ($18.2 million), of which Gas Malaysia’s portion is estimated at 49.8 million ringgit based on its 70 percent share of the total cost.
Up to $760 million
In March, Gas Malaysia received a letter to proceed from the Energy Commission of Malaysia for its planned FSRU-based LNG regasification terminal.
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 ($507-760 million).
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.
