Gas Malaysia targets investment decision on Kedah LNG terminal by second half of 2027

Gas Malaysia plans to announce its final investment decision on a first-of-its-kind regasification terminal by mid-2027, according to the company's chief executive, Azli Mohamed. The proposed facility, being developed jointly with Japanese firm Tokyo Gas and Dutch group VTTI, is set to cost between 2 billion and 3 billion ringgit ($490 million to $735 million).

Located in Kedah, northern Malaysia, it would be the first LNG import terminal in the region not owned by state energy firm Petronas. The terminal, expected to begin operations by the end of 2030, will have a capacity of up to 6 million tons per annum, aiming to address a gap in gas distribution in Malaysia's northern region. As Malaysia, the world's fifth-largest exporter of LNG, sees an increase in domestic gas power demand driven by data center growth and economic expansion, with plans to phase out coal-fired generation by 2044, the new terminal could play a crucial role in enhancing energy security.