Gas Malaysia, Petronas Gas team up to study Yan terminal pipeline link

KUALA LUMPUR, Sept 7 — Gas Malaysia Bhd and Petronas Gas Bhd (PGB) have signed a joint study and collaboration agreement (JSCA) to evaluate the creation of an onshore lateral pipeline for the proposed regasification terminal (RGT) Yan project. The JSCA, as announced in a filing with Bursa Malaysia, outlines the framework for the companies to carry out a feasibility study and associated activities for the pipeline interconnection.

The agreement specifies the parties' roles, responsibilities, and cost-sharing arrangements for the study, which is necessary due to the Energy Commission of Malaysia's letter of proceed (LTP) for the RGT Yan project. The feasibility study will examine the technical, operational, and commercial viability of the proposed pipeline connection, encompassing engineering design, land acquisition requirements, and other technical assessments needed to support PGB's confirmation of the interconnection.

PGB will lead the feasibility study, which will involve hydraulic steady-state and transient simulations, site surveys (both desktop and field assessments), engineering surveys, soil investigations, and front-end engineering design. Gas Malaysia will contribute its data on volumetric flow rates and gas demand at the relevant demand centres to aid in the pipeline feasibility assessment.

It is worth noting that PGB is a related party of Gas Malaysia due to its direct 14.8% stake in the company. The outcome of the study will provide crucial information to progress the RGT Yan project and facilitate the necessary submission to the Energy Commission in compliance with the LTP.