Kuala lumpur: Gas Malaysia Bhd, a unit of MMC Corporation Bhd, took a significant step in strengthening Malaysia's energy security with the signing of a joint development agreement with Tokyo Gas Co Ltd and VTTI BV for the proposed development of a liquefied natural gas (LNG) regasification terminal (RGT) in Yan, Kedah.

According to BERNAMA News Agency, Gas Malaysia stated that 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 RGT Yan is anticipated to enhance supply flexibility, diversify gas sources, and support the growing energy needs of the region's industrial and power sectors.

Envisaged as an offshore floating storage and regasification unit located off Pulau Bunting, Yan, the facility is expected to have a capacity of up to six million tonnes per annum. 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. Gas Malaysia will lead the project, collaborating with Tokyo Gas and VTTI to leverage complementary strengths across the LNG value chain.

The project is advancing to its next phase of development following the Energy Commission's issuance of the letter to proceed in March 2026. This phase includes technical, commercial, and regulatory workstreams as it moves towards a final investment decision. Once completed, RGT 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.