Regional LNG: Petronas Gas to develop third LNG regasification terminal

By Romel S. Gurky

Petronas Gas Berhad, a unit of Malaysian state oil, gas firm PETRONAS, has been appointed to develop a third liquefied natural gas regasification terminal in Lumut, Perak, following a notification from Malaysia’s Ministry of Economy.

The project, known as RGT-3, will be developed using a floating storage and regasification unit concept, marking the first deployment of such technology in Malaysia.

The company said the terminal will have a storage capacity of 170,000 cubic meters of LNG and a regasification capacity of 500 million standard cubic feet per day.

Gas from the facility will be transported via pipeline to the Peninsular Gas Utilisation system. The project is expected to support additional gas demand equivalent to about 3.5 gigawatts of power generation capacity.

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Petronas Gas targets commercial operations for the terminal in the second quarter of 2029.

The company said the project follows technical and commercial assessments based on gas supply and demand projections in Peninsular Malaysia.

The development will be regulated by Suruhanjaya Tenaga, with tariffs determined under an incentive based regulation framework.

Petronas Gas said it is also exploring potential partnerships for the project.

The company noted that the project will be funded through a combination of debt and equity and is not expected to have a material impact on its financial position for the 2026 financial year.

Editing by Alexander Ginting