Gas Malaysia received a letter to proceed from Malaysia’s Energy Commission for the development of a regasification terminal in Yan, Kedah. The project is located west of Pulau Bunting and is intended to function as an offshore floating storage and regasification unit.
The facility has a planned capacity of up to six million tonnes per annum, according to the company. Development costs for the terminal are currently estimated to range between MYR2 billion ($426 million) and MYR3 billion.
While the regulator has issued the letter to proceed, the company noted that the move does not constitute a final investment commitment. The project remains subject to the fulfilment of specific conditions imposed by the commission within a set timeline.
Moving into the next phase of implementation involves detailed engineering, site preparation, and the progression of financing arrangements. Gas Malaysia stated the manner of funding for the terminal will be determined at a later stage.
The board of directors of Gas Malaysia stated the acceptance of the letter is, "in the best interest of the company and its shareholders". Upon its commissioning and completion, the company expects the project to contribute positively to its future earnings.
The company said it would provide further updates upon the execution of a definitive agreement or when more material information becomes available.
