Gas Malaysia Berhad announced the signing of a Joint Development Agreement (JDA) with Tokyo Gas Co., Ltd. and VTTI BV to advance the development of a new Liquefied Natural Gas (LNG) regasification terminal in Yan, Kedah state, in northern Peninsular Malaysia.
The initiative represents a strategic step to strengthen national energy security by adding a new LNG entry point, which will diversify supply sources and respond to growing energy demand from the region’s industrial and power sectors.
The project, known as RGT Yan, will be developed as a Floating Storage and Regasification Unit (FSRU) located off Pulau Bunting and will have an estimated capacity of up to six million tonnes per year (MTPA).
Essential infrastructure for energy resilience
The future terminal aims to increase the flexibility of Malaysia’s gas system amid industrial growth and evolving energy demand. The facility will help strengthen LNG import and distribution capacity.
With an estimated investment of between 2 and 3 billion Malaysian ringgit, the project is one of the most significant energy infrastructure initiatives currently under development in the country.
According to Gas Malaysia, the terminal will improve supply resilience and provide greater operational stability in the face of potential fluctuations in the regional energy market.
International partnership to develop the LNG value chain
The collaboration brings together the expertise of three companies with complementary capabilities across the liquefied natural gas value chain.
Gas Malaysia will lead the project’s development, contributing its knowledge of the domestic market and experience in energy infrastructure.
Tokyo Gas will contribute its track record in procurement, regasification, and operation of LNG terminals, while VTTI will provide its global experience in the development, storage, and management of energy infrastructure.
Azli Mohamed, President and Group Chief Executive Officer of Gas Malaysia, highlighted that the initiative represents a strategic evolution for the company.
The project moves toward the final investment decision
The initiative received a decisive boost following the issuance of the Authorization to Proceed Letter by Malaysia’s Energy Commission in March 2026.
The project is now entering a new phase that includes technical studies, commercial assessments, and regulatory processes that will lead to the Final Investment Decision (FID), considered one of the most important milestones for delivering the terminal.
Gas Malaysia accelerates its energy transformation
The construction of RGT Yan is part of Gas Malaysia’s GM32 growth strategy, aimed at transforming the company from a national gas distributor into a key player in energy infrastructure development.
Once completed, the terminal will help strengthen the country’s energy security, drive economic growth in northern Malaysia, and support the transition to a more flexible and resilient energy system.
The project also reflects the growing interest among Asian countries in expanding their LNG import capacity as part of energy diversification and emissions-reduction strategies in the coming decades.
Source: https://www.gasmalaysia.com/
Photo: (Tokyo Gas)
