Kuala lumpur: Gas Malaysia Bhd has entered into a joint study and collaboration agreement with Petronas Gas Bhd (PGB) to explore the development of an onshore lateral pipeline. This pipeline aims to connect the proposed regasification terminal (RGT) Yan project to the Peninsular Gas Utilisation system.

According to BERNAMA News Agency, the agreement outlines a framework for both companies to conduct a feasibility study and related activities for the proposed pipeline interconnection. This joint study and collaboration agreement (JSCA) formalizes the roles, responsibilities, and cost allocation for the study, forming part of the requirements under the Energy Commission of Malaysia's letter of proceed for the RGT Yan project.

The feasibility study will evaluate the technical, operational, and commercial viability of the proposed pipeline interconnection. This includes engineering design, land acquisition requirements, and other technical assessments necessary to support PGB's confirmation of the proposed interconnection. The study is expected to yield information critical for progressing the RGT Yan project and facilitating the necessary submission to the Energy Commission in line with the letter of proceed.

Under the agreement, PGB will lead the feasibility study, which will encompass hydraulic steady-state and transient simulations, site surveys including both desktop and field assessments, engineering surveys, soil investigations, and front-end engineering design. The studies are intended to assist PGB in assessing the technical feasibility of developing the lateral pipeline.

Gas Malaysia will contribute by providing data on volumetric flow rates and gas demand at relevant demand centers to support the pipeline feasibility assessment. It is noteworthy that PGB is a related party of Gas Malaysia, holding a direct 14.8 percent stake in the company.