KUALA LUMPUR, May 15 (Bernama) -- Gas Malaysia Bhd has entered into a joint development agreement (JDA) with Japan’s Tokyo Gas Co Ltd and Netherlands-based VTTI B.V. to develop the liquefied natural gas (LNG) regasification terminal project in Yan, Kedah.
In a Bursa Malaysia filing, the oil and gas company said the total estimated development cost under the JDA is RM72 million, of which Gas Malaysia’s 70 per cent share is RM49.8 million.
Gas Malaysia said the collaboration 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.
“The JDA also provides a structured governance framework for the joint development phase, leading towards the final investment decision. 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,” the filing said.
The project is expected to strengthen national energy security and supply resilience by diversifying LNG import infrastructure and reducing concentration risk associated with existing LNG entry points into Peninsular Malaysia, while supporting future industrial and power sector growth in the northern region.
It is also expected to position Gas Malaysia favourably to capture long-term growth opportunities arising from Malaysia’s evolving energy landscape and energy transition agenda.
-- BERNAMA
