Gas Malaysia plans Kedah LNG terminal costing RM2 billion to RM3 billion
The proposed facility in Yan is due to start operating by the end of 2030 and would offer an alternative to supplies from PETRONAS.
Gas Malaysia Bhd’s proposed regasification terminal in Kedah carries an estimated cost of RM2 billion to RM3 billion, with operations due to begin by the end of 2030, chief executive Azli Mohamed told Reuters.
Japan’s Tokyo Gas and a Dutch group are jointly developing the project with Gas Malaysia. Planned for Yan district, the facility is expected to have capacity of up to six million tonnes per annum.
Azli said the development would help close a northern Malaysia gas-distribution gap. It would be Peninsular Malaysia’s first liquefied natural gas (LNG) import facility built by an entity other than Petroliam Nasional Bhd (PETRONAS).
Gas Malaysia obtains its gas from PETRONAS, but Azli said the terminal would enable purchases from alternative suppliers. The company intends to prioritise LNG imports for now, while keeping open the possibility of future pipeline exports to neighbouring countries such as Thailand.
In response to overcapacity concerns, Azli cited plans by Malaysia to add nine gigawatts of gas-fired generation capacity by 2032. He also said future power-sector pricing policy would influence Gas Malaysia’s competitiveness.
