en.Wedoany.com Reported - Gas Malaysia has signed a joint development agreement with Tokyo Gas and VTTI to build a new liquefied natural gas (LNG) regasification terminal in the Yan district of northern Peninsular Malaysia, aiming to enhance the country's long-term energy resilience. The facility is planned to utilize an offshore floating storage and regasification unit (FSRU) near Pulau Bunting, with an expected annual capacity of up to 6 million tonnes. The project development cost is estimated between 2 billion and 3 billion ringgit, representing a significant long-term investment in Malaysia's energy infrastructure.
The development of this regasification terminal comes as Malaysia strengthens its energy system to support industrial growth and evolving consumption patterns. With increasing demand for cleaner and more flexible fuel sources, LNG is expected to play a key role in ensuring a stable and transitional energy structure for the country. The new LNG entry point in Yan will enhance supply flexibility, diversify gas sources, and support the growing energy needs of the region's industrial and power sectors.
Under the cooperation agreement, Gas Malaysia, as the project lead, collaborates with Tokyo Gas and VTTI to integrate complementary strengths across the LNG value chain. Gas Malaysia brings deep domestic market knowledge and infrastructure experience, Tokyo Gas contributes extensive expertise in LNG procurement and regasification, while VTTI has a global track record in terminal development and operations.
Azli Mohamed, President and Group CEO of Gas Malaysia, said: "The signing of this Joint Development Agreement (JDA) marks a significant milestone for Gas Malaysia as we vertically expand our role in the LNG value chain. Exploring collaboration with globally renowned companies such as Tokyo Gas and VTTI allows us to leverage international best practices while firmly anchoring the project in Malaysia's national energy agenda." Following the issuance of a letter of work authorization by the Energy Commission in March 2026, the project has now entered its next development phase, including technical, commercial, and regulatory workstreams, moving towards a final investment decision.
Kasutani Toshihide, Representative Director, Executive Vice President and CEO of Overseas Business Company at Tokyo Gas Co., Ltd., added: "Since our involvement in the establishment of Gas Malaysia in 1992, we have worked closely with Gas Malaysia to support the development of Malaysia's gas business. Leveraging our expertise in LNG terminal operations in Japan, as well as insights gained from participating in the FSRU project in the Philippines, we are eager to collaborate with Gas Malaysia and VTTI to contribute to the development of Malaysia's LNG and gas value chain." Tom Smeenk, Executive Vice President of Growth at VTTI, noted: "VTTI is pleased to partner with Gas Malaysia and Tokyo Gas on this strategic LNG infrastructure project. As Malaysia advances the liberalization of its gas market, this project supports our strategy to build a global LNG terminal platform and strengthen supply security. Malaysia is already an important country for VTTI, and we are jointly committed to supporting the nation's long-term energy resilience and growth."
Once completed, the Yan regasification terminal is expected to strengthen Malaysia's energy security, support economic growth in the northern region, and enhance the resilience of the national gas supply system. The project reinforces Gas Malaysia's ongoing transformation from a domestic gas distributor to a strategic energy infrastructure player, aligning with its GM32 vision to drive long-term growth while supporting Malaysia's broader energy transition.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
