Gas Malaysia Eyes RM2-3 Billion Regasification Terminal in Kedah

Gas Malaysia Bhd, in partnership with Tokyo Gas and Dutch group, plans to invest between RM2 billion and RM3 billion (US$490 million to US$735 million) in a regasification terminal in Kedah. The facility is expected to come online by the end of 2030 and will be the first LNG import facility in Peninsular Malaysia not built by state energy firm Petroliam Nasional Bhd (PETRONAS).

The proposed terminal aims to fill a gap in gas distribution in Malaysia's northern region, driven by increasing demand for natural gas power. According to Gas Malaysia CEO Azli Mohamed, 'If you do the math, there are definitely strong requirements and needs for importing LNG through various different terminals, and I think we fit into that equation.'

The project is expected to be capable of producing up to six million tonnes per annum, with a focus on LNG imports to strengthen energy security in Peninsular Malaysia. However, Gas Malaysia does not rule out future pipeline gas exports to neighboring countries like Thailand.