Petroleum Sarawak Berhad (PETROS), the state-owned energy company of Sarawak, Malaysia, and Höegh Evi, a Norway-based floating energy infrastructure company, are reported to have signed a Joint Development Agreement (JDA) on 30 September 2026 to jointly develop, own and operate an LNG import terminal in Kuching, Sarawak. The terminal is said to be part of the Kuching Low-Carbon Hub (KLCH), for which PETROS serves as Master Developer. The companies are reported to say the terminal will supply natural gas for power generation and industrial growth in Sarawak.
The Kuching LNG Terminal is said to comprise a Floating Storage and Regasification Unit (FSRU), mooring infrastructure, subsea and onshore pipelines, and onshore gas receiving facilities. Under the JDA, PETROS and Höegh Evi are reported to jointly develop, own and operate the terminal. PETROS is described as contributing its Master Developer role for KLCH and Höegh Evi its FSRU expertise.
The terminal is also said to offer small-scale LNG distribution for customers not connected to pipeline networks, including truck loading, LNG bunkering, storage and reloading services. The companies are reported to say the arrangement includes knowledge-sharing initiatives to strengthen local capabilities.
First gas delivery is targeted for the end of 2029. The companies are reported to be evaluating whether the project schedule can be accelerated as demand develops. The terminal’s regasification capacity, investment size and final investment decision (FID) timing were not disclosed in the announcement. The agreement was signed on 30 September 2026.
The agreement is presented as supporting Sarawak’s energy security, meeting growing energy demand and enabling new industrial development. Although Sarawak is itself a gas-producing region, the project appears to establish a separate LNG import-based supply route for the Kuching area.
First, FSRUs are generally regarded as faster to build than onshore terminals, and can serve as a way to build gas infrastructure in stages where new demand is forming. Second, truck loading and bunkering functions for customers outside pipeline networks suggest the terminal could grow into a fuel supply hub for industry and shipping as well as power. Third, a structure in which a regional state-owned company acts as Master Developer and a global FSRU operator co-owns the terminal can be viewed as a model that shares development risk while transferring know-how. Fourth, because capacity and investment size are undisclosed, the project’s economics and schedule need to be confirmed through later announcements.
First, whether the regasification capacity, FSRU specification and total investment are disclosed. Second, the timing of FID and of the FSRU procurement contract. Third, whether the end-2029 target can be brought forward as demand develops. Fourth, whether gas supply agreements with power and industrial offtakers within KLCH become concrete.