Malaysian state gas infrastructure company Petronas Gas Berhad announced it will jointly develop Malaysia’s first third LNG (Liquefied Natural Gas) regasification terminal (RGT-3) in Lumut, Perak, together with Integrax Bhd, a subsidiary of Tenaga Nasional Berhad (TNB). The terminal will use a floating storage and regasification unit (FSRU) with a storage capacity of 170,000 cubic meters, with a daily regasification capacity of 500 million standard cubic feet (500 MMscfd), reported to be capable of supporting approximately 3.5GW of power generation demand.
The project is being advanced by Petronas Gas Berhad and TNB’s subsidiary Integrax Bhd through a Heads of Agreement (HOA), and represents the first third LNG regasification terminal to be built in Malaysia. Malaysia’s Ministry of Economy issued an approval letter for the project on April 30, 2026, and Petronas Gas Berhad and TNB subsequently signed the joint development agreement in May of the same year, according to reports. The terminal will be built using an FSRU with a storage capacity of 170,000 cubic meters, and the regasified natural gas is expected to be connected via pipeline to the Peninsular Gas Utilisation (PGU) network.
The FSRU has a storage capacity of 170,000 cubic meters, with a daily regasification capacity of 500 million standard cubic feet (500 MMscfd). This scale is reported to be capable of supporting approximately 3.5GW of power generation demand. Malaysia’s Ministry of Economy issued the approval letter on April 30, 2026, and the joint development agreement was signed in May of the same year.
The project is interpreted as part of a strategy to expand LNG import infrastructure to strengthen the stability of natural gas supply in Peninsular Malaysia and respond to rising gas demand in the power generation sector. Adopting the FSRU approach is also notable for its potential to shorten construction timelines compared with onshore terminals.
In Southeast Asia, rising gas demand for power generation combined with declining domestic gas field production has continued to drive expansion of LNG import terminals, and this RGT-3 project can be viewed as an extension of that trend. The FSRU approach is increasingly favored in recent new terminal orders among LNG-importing countries for its relatively shorter construction period and flexible deployment compared with onshore terminals. The participation of Petronas Gas Berhad and TNB, two major state-owned companies in gas infrastructure and power generation respectively, in a joint development format illustrates a recent industry trend of securing gas procurement stability through cooperation between upstream suppliers and power generators. For shipbuilding and offshore equipment suppliers and EPC firms providing FSRU hull construction or conversion, regasification equipment, and mooring infrastructure, this project could translate into opportunities to win similar future projects. As expanding LNG import infrastructure has become a common trend among Southeast Asian countries transitioning from coal-fired to gas-fired power generation, this project stands out as a notable case within that regional ordering trend.
Following the signing of the Heads of Agreement, how subsequent procedures unfold — including FSRU supplier selection, the final investment decision (FID), and the actual construction start date — is the primary point to watch. The specific timeline for terminal completion and commercial operation has not yet been confirmed and will require verification through future official announcements. The specific contractual terms for connecting regasified gas to the PGU pipeline network and the composition of gas offtakers are also of interest. Comparisons with, and the competitive dynamics against, other LNG import terminal projects underway in Malaysia and neighboring Southeast Asian countries also warrant continued observation.