Kuala lumpur: Gas Malaysia Bhd has announced a joint development agreement with Japan's Tokyo Gas Co Ltd and Netherlands-based VTTI B.V. to develop a liquefied natural gas (LNG) regasification terminal in Yan, Kedah. This initiative marks a significant step in enhancing Malaysia's LNG infrastructure and energy security.

According to BERNAMA News Agency, the total estimated development cost under the agreement is RM72 million, with Gas Malaysia bearing 70 percent of the cost, amounting to RM49.8 million. The collaboration aims to leverage the technical, operational, and infrastructure expertise of all three companies, enhancing the project's development capabilities, commercial viability, and long-term sustainability.

The agreement outlines a structured governance framework for the joint development phase, which will culminate in a final investment decision. The partners will assess technical, commercial, regulatory, and financial aspects before committing to the project's implementation and investment.

The LNG regasification terminal project is expected to bolster national energy security by diversifying LNG import infrastructure, reducing the concentration risk of existing LNG entry points into Peninsular Malaysia, and supporting industrial and power sector growth in the northern region. Additionally, it positions Gas Malaysia to capitalize on long-term growth opportunities in Malaysia's evolving energy landscape and transition agenda.