Gas Malaysia Targets Mid-2027 Investment Decision on Kedah LNG Terminal

Gas Malaysia Bhd aims to make a final investment decision on its first regasification terminal by the second half of next year. The facility, which is being jointly developed with Tokyo Gas and VTTI at an estimated cost of between RM2 billion and RM3 billion (US$490 million to US$735 million), will be constructed in the Yan district of Kedah.

The terminal, which is expected to come online by the end of 2030, will be the first LNG import facility in Peninsular Malaysia not built by state energy firm Petroliam Nasional Bhd (PETRONAS). Gas Malaysia CEO Azli Mohamed said that the project is aimed at filling a gap in gas distribution in Malaysia's northern region.

Malaysia is expected to see an increase in domestic gas power demand, fuelled by a boom in data centre growth and broader economic expansion. The country plans to deploy nine gigawatts of new gas-fired power generation capacity by 2032, which Azli believes will create strong requirements for importing LNG.

The Gas Malaysia terminal is expected to produce up to six million tonnes per annum and will allow the company to purchase LNG from other suppliers, not just PETRONAS. The project also marks a step towards liberalising the gas market in Malaysia, with Azli expecting that the country could become a net LNG importer within 10 to 15 years.