Gas Malaysia advances strategic LNG infrastructure in Northern Peninsular

The project marks a significant step in strengthening Malaysia’s long-term energy resilience by introducing a new LNG entry point in the northern region of Peninsular Malaysia. The regasification terminal in Yan is expected to enhance supply flexibility, diversify gas sources, and support the growing energy needs of industrial and power sectors in the region.

Envisaged as an offshore FSRU located off Pulau Bunting, Yan, the facility is expected to have a capacity of up to 6 million tpy. With an estimated development cost of between RM2 billion and RM3 billion, the project represents a major long-term investment in Malaysia’s energy infrastructure.

The development of the regasification terminal comes at a time when Malaysia continues to strengthen its energy system to support industrial growth and evolving consumption patterns. As demand for cleaner and more flexible fuel sources increases, LNG is expected to play a critical role in ensuring a stable and transition-ready energy mix for the country.

Under the collaboration, Gas Malaysia will serve as the project lead, working alongside Tokyo Gas and VTTI to combine complementary strengths across the LNG value chain. Gas Malaysia brings deep domestic market knowledge and infrastructure experience, while Tokyo Gas contributes extensive expertise in LNG procurement and regasification, and VTTI offers a strong global track record in terminal development and operations.

Gas Malaysia President & Group CEO, Azli Mohamed, commented: “The signing of this JDA marks a significant milestone for Gas Malaysia as we expand our role vertically along the LNG gas value chain. Exploring collaboration with globally recognised players such as Tokyo Gas and VTTI allows us to leverage international best practices while anchoring the project firmly within Malaysia’s national energy agenda.”

Following the issuance of the Letter to Proceed by the Energy Commission in March 2026, the project is now advancing into its next phase of development, including technical, commercial and regulatory workstreams, as it moves towards a final investment decision.

Kasutani Toshihide, Representative Corporate Executive Vice President and Chief Executive of Overseas Business Company, Tokyo Gas Co., Ltd, added: “Since our participation 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 through our participation in an FSRU project in the Philippines, we are eager to work together with Gas Malaysia and VTTI to contribute to the development of Malaysia’s LNG and gas value chain.”

Tom Smeenk, Executive Vice President Growth of VTTI, noted: “VTTI is pleased to collaborate with Gas Malaysia and Tokyo Gas on this strategic LNG infrastructure project. The project supports our strategy to build a global LNG terminal platform and strengthen security of supply as Malaysia advances gas market liberalisation. Malaysia is already an important country for VTTI, and together we aim to support the country’s long-term energy resilience and growth.”

Once completed, the regasification terminal in Yan 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 into a strategic energy infrastructure player, in line with its GM32 vision to drive long-term growth while supporting Malaysia’s broader energy transition.

Read the article online at: https://www.lngindustry.com/small-scale-lng/10062026/gas-malaysia-advances-strategic-lng-infrastructure-in-northern-peninsular/